ATTENTION CONTRACTORS! READ your insurance requirements!

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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.


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.


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.


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.


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.



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.

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