Summer Building Projects

Peggy Wilson

Vice President – Member Services

Arthur J. Gallagher

It is that time of year when many members start, or have already started, construction projects by making updates to their buildings, renovations or constructing a new building. MUSIC provides its members’ Builders’ Risk coverage up to $50,000,000 for any one loss at any one location.

This coverage is needed when a construction project is being done by the member. Builders’ Risk coverage protects the member, contractor, sub-contractor(s), and sub-subcontractor(s) insurable interest in materials, fixtures and/or equipment being used in the construction or renovation of a building or structure should those items sustain physical loss or damage from a covered loss.

MUSIC has a Builders’ Risk Notification Form that is required to be completed PRIOR to the materials arriving on the project site. This form requests information pertaining to the project, so that we can have a record in our system and to present to our excess property carriers. MUSIC also wants to make sure that all contracts have been reviewed by either your school attorney or someone from the MUSIC staff.

Contracts are very important. They are an agreement by two or more parties confirming that both parties agree to follow the wording in the contract. Most all contracts indicate that the “Member” is responsible to provide certain insurance requirements. We want to make sure that those requirements are in line with what MUSIC provides you as a member. If the Member signs a contract, you need to make sure that you are able to provide what the other party is requiring. We have come across cases where the contract has already been signed, but the requirements that have been agreed upon are not available. This is a problem and can slow the claim process down, and can put the Member on the line if there is no insurance or recourse that MUSIC can provide.

It is very important for all construction contracts to be reviewed by your school attorney or the MUSIC Team to ensure both parties can provide what is being asked and that the contract is balanced for both parties.