ATTENTION CONTRACTORS! READ your insurance requirements!

18 August 2025

See How We're Different

Get A Quote

or call us:  (858) 384‑1506

ATTENTION CONTRACTORS! READ your insurance requirements.


It will mean the difference between a profitable construction business and one that sinks into the red.


Fusco Orsini & Associates has 50+ years of combined experience working with contractors.


We KNOW insurance requirements because we read over them every day.


We notice trends when reviewing contracts for our clients, and the trends are not favorable to the contractor.


2022 has proven to be a year of harsher insurance requirements when performing projects, especially for larger, more sophisticated project owners.


Do not sign a contract until you understand the contractual insurance requirements AND the costs associated with meeting them.


Here are some trends to watch for in 2022 and moving forward.


UMBRELLA POLICIES


Secure an umbrella policy if you plan to perform jobs for larger GCs, project managers, or clients. And keep it in place. Make an umbrella part of your insurance portfolio.


Understand the cost of an umbrella policy and factor it into your overhead.


It will allow you to job cost and bid profitably.


UMBRELLA LIMITS


It seems the days of 1MM, 2MM, and even 3MM umbrella limits are gone.


More and more, we see requests for 5MM-10MM limits of insurance, which, in 2022’s hardened market, is costly.


But not as costly if you plan for the premium before signing on the dotted line.


Pay close attention to the required limits and which underlying policies the umbrella must exceed.


ENDORSEMENTS ON THE UMBRELLA POLICY


I won’t dive too deep into the technicalities of these endorsements.


Still, you may run into issues if your client requires primary wording, noncontributory wording, or waiver of subrogation endorsements ON the umbrella policy.


Do not rely on your client accepting ‘follow-form’ language from the excess carrier and the issuance of these endorsements on your underlying general liability.


Reading and understanding your requirements is crucial.


CYBER AND POLLUTION LIABILITY


You may find pollution liability more commonly requested in construction contracts.


But don’t sleep on cyber.


Although pollution liability seems like a more valuable product to indemnify construction contracts, cyber liability is a smoking gun that keeps people awake at night.


And your clients may very well be those people.


I’m not saying you’re surely going to come across the requirement for pollution or cyber liability.


But, if it’s in your contract, you need to know.


You may have luck securing a waiver. If not, the costs of these policies will chew into your profits.


Know ahead of time.


HOW DO I HIRE A KNOWLEDGEABLE AGENT TO HELP ME?


Easy!


Call FOA at (858) 384-1506 , and ask to speak to an agent.


Or, complete the form at the bottom of our BLOG, and an agent will reach out.


Thanks again for visiting!

Headshot of a smiling person wearing a blue plaid suit, white shirt, and teal tie against a dark blue circular background.

By: Michael Fusco

CEO & Principal of Fusco Orsini & Associates

(858) 384‑1506

Recent Post

Blue and white graphic with text: employee benefits 2027 an overview for business owners
by Mike Fusco • 18 September 2026
How small and midsize business owners can navigate employee benefits in 2027: a look at key health insurance cost drivers, trends, and what employers can do next.
Assault and Battery Insurance for Hospitality Venues
26 August 2026
Assault and battery insurance protects hospitality venues from fight-related claims, security incidents, legal costs, and costly coverage gaps.
Assault and Battery Insurance for California Bars
26 August 2026
Assault and battery insurance for California bars protects against fight-related claims, legal costs, bouncer incidents, and costly coverage gaps.
Show More