The W.E. Davis Insurance Tower Contractor Insurance Program
Summary of typical coverages required by a growing numbers of tower owners.
Primary general liability
- $1,000,000 each occurrence
- $1,000,000 personal & advertising injury
- $2,000,000 products and completed operations aggregate
- $2,000,000 general aggregate
- $100,000 damage to rented premises
Following form excess liability
- $5,000,000 each occurrence
- $5,000,000 aggregate
[dropcap]T[/dropcap]hese coverages are commonly required whether the contractor is constructing towers, installing (or replacing existing) equipment on the towers, or inspecting the towers. In addition to the standard general liability coverages, the primary (and all excess) policies are commonly also required to extend the following fringe coverages.
- Blanket additional insured on a primary and non-contributory basis; this coverage must extend into the products-completed operations of the policy. Since the term of this coverage into the products and completed operations coverage varies among tower owners, this additional insured must apply as required in the written contract between the insured and the tower owners (or between the general contractor and the tower owner if our insured is a subcontractor to the general contractor). Based on the position of the insured, this coverage may be required for the tower owner, any and all subsidiary and affiliated companies owned by that parent company, the company contracting with this tower owner, those entities receiving service from the use of the tower (i.e.: Nextel, Sprint, etc.) and any subcontractors primary to our insured’s position as a subcontractor.
- Blanket waiver of subrogation favoring the tower owner, its subsidiaries and affiliated companies, the general contractor and any subcontractors in a higher position than our insured contractor.
- Blanket per project aggregate to apply to each site where the insured works; the per-project definition is not to apply to each contract (which may include several different site locations on a single contract).
The blanket provisions applying in the primary policies must also follow form in the excess on a blanket basis without specific reporting requirements to the excess insurer during the policy term as larger tower companies will not accept the monitoring of certificates from an individual tower contractor for each project location.
Another consideration is the need to provide coverage in all 50 states as well as U.S. territories, Puerto Rico and Canada. While this is the territory routinely included in liability policies, we will need to also consider the specific state of domicile, as well as the locations of operations for the 2500 (or so) tower contractors as licensing of the insurer in all states potentially, will be needed as well as the need for claim representation throughout the country.
While meeting the general liabilities/excess liability insurance requirements presents the greatest challenges, the builder’s risk/installation floater, business auto and tool/equipment coverages should eventually be considered as well.
To discuss your insurance options, please contact William B. Mitchell, CPCU, ARM, CIC today!