Construction liability & insurance

The university faces a myriad of risks relating to construction of new facilities, remodeling, refurbishing, seismic retrofitting, and improvements to existing facilities. Even though contractors perform the work, the University is still exposed to potential loss from construction operations and activities at our project sites.

Construction risks are not covered by insurance programs that typically cover the University's day-to-day business operations and activities. There are insurances specifically designed for construction risks and Office of the President, Risk Services, is responsible for procuring these insurances.

Loss or damage to property under construction is covered by Builder's Risk insurance. A Master Builder's Risk insurance program has been in place at the university since 1989. The program provides coverage for direct physical loss or damage to construction projects and is required for all projects valued in excess of $200,000. This coverage not only extends to The Regents, but also to the general contractors, sub-contractors, construction managers, and others.

On January 1, 2010, the University implemented a Master University Controlled Insurance Program (UCIP) which is a single insurance program, purchased and controlled by the university for its construction projects. The UCIP is designed specifically for all projects with an anticipated construction value over $25,000,000. It provides uniform and consistent coverage for Workers' Compensation and General and Excess Liability for all contractors performing work at the project site. In contrast, the approach widely used in the past at the university required all contractors and subcontractors to each provide their own insurances and the university pays for this coverage through costs embedded in the contractor's bids.

These Master programs not only provide better coverage, but coverage dedicated to the project and for the duration of the project, as well as the potential to achieve cost savings.

Projects are not automatically covered under the Master Builder's Risk and University Controlled Insurance Programs. The Project Manager or designee, through the Facilities, Design and Construction or Capital Projects office, must submit a request to enroll projects into these programs.

In addition, some projects may require further review and analysis to determine if other insurance specific to the project will be necessary. Local Risk Management offices and the university's construction insurance broker can assist in this effort.

For forms, procedures, guidelines, and additional links, please see the Construction Liability & Insurance Resources page.

Other construction related insurance to be considered:

  • Design Professional Errors and Omissions
  • Contractor's Pollution Liability
  • Pollution Legal Liability

Additional information about these construction insurances: