Insurance requirements for ground-up development are significantly broader than for completed real estate.

From a liability point of view it is essential that all parties involved obtain appropriate insurance to protect the owner.

The scope, therefore, has to include the general contractor, construction manager if applicable, and all the trades. We have frequently found that General Liability and even Workers Compensation policies provided by some subcontractors are woefully inadequate in terms of limits, sub-limits and especially with respects to harmful coverage limitations or outright exclusions.

Alpha Risk – We are an independent consultant not engaged in the sale of insurance

The solution designed years ago to close these gaps is with the use of a wrap-up liability policy obtained by the General Contractor or CM.  When the owner is utilizing either an OCIP (Owner-Controlled Insurance Program) or a CCIP (Contractor-Controlled Insurance Program) the program design is written in such a way as to favorably address these potential shortcomings.

The other insurance requirements would extend to:

• Architects
• Engineers
• Environmental

And Alpha would be directly involved in oversight of those placements.

With respect to 1^st party property coverage, we would design a builders risk policy which would provide broad policy clauses as well.

When there are loss-sensitive policies in place Alpha would assist during the life of the project and thereafter in the review of periodic premium calculations.

At project’s completion we would oversee the transition from a builders risk policy into an all-risk property insurance program.