An Administrator's Guide to California Private School Law

Chapter 17 – Construction

A. I NSURANCE O F A RCHITECTS , C ONSTRUCTION M ANAGERS , A ND O THER P ROFESSIONALS When the school retains and uses architects, engineers, construction managers, and other professionals to perform services on a construction project, it exposes itself to certain risks and potential liabilities. First, these professionals may fail to perform the duties and services required of them under their respective contracts with the school or they may negligently perform these duties. Second, these professionals’ services may cause bodily injury, property damage, or other losses. Generally, the school should require the following insurance policies from architects, engineers, construction managers, and other construction professionals:  Errors and Omissions and Professional Liability Insurance : This kind of policy protects the professionals from claims and lawsuits for

professional negligence, and is a potential source of recovery by the school for claims against the professionals. For example, this insurance generally covers a claim that the architect defectively designed a project. If an errors and omissions policy is written on a claims-made basis, the school should ensure the policy period extends three to five years beyond the completion of the project. A third party might not make a claim until well after completion of a project.  Commercial General Liability (“CGL”) Insurance : A CGL policy generally provides for the indemnity (payment of a judgment or settlement) and defense (retention and payment of attorney) of the insured (here architect or construction manager) and any additional insured (i.e. school and its board, trustees, directors, officers, employees, and agents) against a third party’s claims for bodily injury or property damage. A CGL policy will also provide coverage for personal injury (including libel, slander, or defamation) and advertising injury. CGL policies also generally exclude coverage for professional services. Therefore, school’s hired professionals must also procure errors and omissions and professional liability insurance. CGL policies typically exclude coverage for bodily injuries to employees covered by a workers’ compensation policy, and for bodily injuries and property damage caused by motor vehicles. The policy should name the school and its board, trustees, directors, officers, employees, and agents as additional insureds to ensure it appropriately protects the school.  Commercial Automobile Liability Insurance : The architect or construction manager and their staff must typically drive onto the project site or a school’s campus. This creates potential liability for property damage and bodily injury due to the operation of motor vehicles. Automobile liability insurance should therefore be required of the professional and its consultants and subcontractors. The policy should name the school and its board, trustees, directors, officers, employees, and agents as additional insureds to ensure it appropriately protects the school.

An Administrator’s Guide to California Private School Law ©2019 Liebert Cassidy Whitmore 566