An Administrator's Guide to California Private School Law

Chapter 17 – Construction

 Commercial Automobile Liability : The school should require a commercial automobile liability policy any time the contractor or its subcontractors will be using or operating motor vehicles on the project site or the school’s premises. 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.  Workers’ Compensation : Workers’ compensation covers injuries sustained by the contractor’s or its subcontractors’ workers while performing their job duties. Contractors and their subcontractors must obtain, and maintain in effect throughout the project, workers’ compensation insurance coverage in an amount as required by the state. The school does not need to be named as an additional insured on this policy, but should ensure the contractor maintains this coverage, and that the contractor ensure its subcontractors maintain this coverage, to limit its employees from seeking recovery from the school for injuries suffered during construction.

C. S CHOOL ’ S I NSURANCE On a construction project, the insurance procured by the contractor and the subcontractors will generally cover all property damage, bodily injury, and other liabilities that occur on a project, without triggering the school’s insurance policies. The school’s own insurance can still provide excess coverage for policies that do not provide the required coverage or have been terminated or cancelled. Once a project or portions of a project are complete, the school is likely the only entity that has an insurable interest and may obtain insurance coverage. In these circumstances, it is important that the school procure and maintain its own insurance coverage in addition to that required from the contractors and subcontractors. The school’s insurance coverage may provide the additional revenue necessary to complete a project, or replace a damaged structure or building. Before allowing work to commence on any construction project, the school should contact its insurance company or risk manager to make sure that the contractor’s and the school’s insurance policies provide the right types and amounts of coverage for the risks and potential liabilities on the project. Schools should ensure that contract documents clearly state that, if the acts or omissions of the contractor or its subcontractors cause the School to use its own insurance, the contractor will pay for all deductibles and associated costs for that insurance. Generally, a school should make sure that coverage is provided for the following risks and liabilities:  Property insurance covering the destruction, damage, or loss of use of existing buildings and structures on or near the project site;  Builder’s risk insurance covering new structures and buildings to be constructed or remodeled during the project;

An Administrator’s Guide to California Private School Law ©2019 Liebert Cassidy Whitmore 569