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Haylor Risk Management Blog

How to Manage your Districts Risk during a Capital Project

Posted by Public Entities Risk Management Team on May 31, 2022 10:47:43 AM

The vote has taken place, and your District is embarking on a Capital Project!  Exciting times for the students and families, but a big project management commitment for School Business Officials.  Before a single shovel goes in the ground, make sure you have dotted your i's and crossed your t's, especially where Insurance and Risk Management issues come into play.


Why is Contract Review, Certificate Review and Builders Risk Coverage so important to your district.

Property Insurance

  • The District will need to purchase a Builders Risk Policy. 
  • This provides property coverage to the work being completed during the construction and work phase of the project.
  • Contracts typically require that the interest of both the District and the Contractor(s) are covered by the same policy.         
  • We recommend that the District purchases this policy on a “Completed Value Builders Risk” policy form.



Contractor Liability Insurance

  • We need to ensure that all Bid Specifications require proper coverages and limits of liability to be provided by the Contractor(s).
  • Contractor Insurance provisions in the Bid Specifications need to include strong “hold harmless” and “indemnification” language favoring the District.
  • This wording should be reviewed by your Attorney and Insurance Advisor prior to their use.
  • The successful completion of these documents and included language positions the District to successfully “manage” and “transfer” the additional risks created from the project to the appropriate parties that are doing the work for you. 

District Liability Insurance

  • Of significant importance is an OCP policy.  This stands for Owners and Contractors Protective Liability Policy. 
  • This is a policy that the Contractor purchases for the District.  The policy is required in the Bid Specifications.  It is actually an additional policy in the District’s name. 
  • This provides “General Liability” coverage for the District stemming from lawsuits related to activities of the Construction project.  This protects the District’s Liability policy that is intended to cover your day to day operations and exposures to loss. 
  • These claims do occur and the existence of this policy protects your primary insurance policy from paying claims stemming from the Project.  They can be extremely valuable.
  • This is managing and transferring your additional risks from the project to the Contractors performing the work for the District.

 Haylor, Freyer & Coon, Inc. has been in the business of managing risk for Schools since the 1950's.  We have developed a dedicated group of risk management professionals, led by an industry recognized product champion, which allows us to specialize and focus on risks related to schools.  Find out why almost 200 Districts in New York State Trust the Team at Haylor, Freyer & Coon with their Insurance & Risk Management .

See some of the schools we insure in NYS at haylor.com



James Stoddard, Jr., Senior Vice President


315-453-2185 - Phone

315-345-8083 - cell phone


Topics: Liability Insurance, Insurance, Risk Management, Capital Project, Builders Risk