Insurance & Indemnity

These clauses decide who pays when someone is hurt or something is damaged — potentially the most expensive words in your contract.

Insurance you'll carry/require

• General Liability (CGL) — third-party injury/property damage.
• Workers' Compensation — your employees' injuries (required by law).
• Commercial Auto, Builder's Risk, Umbrella/Excess, and sometimes Professional/Pollution.
• Additional insured — the owner/GC asks to be added to your policy so your insurer defends them.
• Waiver of subrogation — your insurer gives up the right to come after the other party; commonly required.
• Certificates of Insurance (COIs) — proof; collect them from every sub before they start.

Indemnification

An indemnity clause shifts liability — you agree to cover the other party's losses. Watch for broad-form indemnity (covering their own negligence), which many states limit or void by anti-indemnity statutes. Match your insurance limits to what you're indemnifying, or you're personally exposed.

Takeaway: Carry the right coverage (CGL, WC, builder's risk), collect COIs and additional-insured/subrogation endorsements from subs, and scrutinize indemnity clauses — broad-form indemnity can exceed your insurance and your wallet.

Educational overview — not legal advice. Construction law varies by state and by contract; consult a licensed construction attorney for your situation.