Risk Management and Insurance

provided by the NASBP Risk Management and Insurance Committee


Topics addressed in articles published in industry publications

Builders Risk Guides

  • Sample Pre Bid Builders Risk Questionnaire Form - This sample form may help identify exposure associated with builders risk before the bid is submitted-Sample form provided by Tom Durkin now with Durkin & Durkin Agency.
  • IRMI Commercial Property Insurance Manual - The section of the IRMI Commercial Property Insurance Manual titled “Builders Risk and Installation Floater Coverage” (IX.J.1 through IX.J.19) is an excellent resource. IRMI publishes, regularly updates, and sells the Manual in various formats at costs ranging from $253 to $389.

Federal Contracting Information and Guides

Green Building

Market Outlook for Various Types of Insurance

Universities and Colleges that Offer Risk Management and Insurance Programs


  • A. M. Best Company is a credit rating organization serving the financial services industries, including the banking and insurance sectors. Best's ratings and analysis are often used as a means of assessing the financial strength and creditworthiness of risk-bearing entities and investment vehicles.
  • Association for Cooperative Operations Research and Development (ACORD) is a global, nonprofit standards development organization serving the insurance industry and related financial services industries.
  • Construction Financial Management Association (CFMA) is a nonprofit organization serving construction financial professionals who represent all types of contractors-including generals and subs-as well as developers, construction managers, architects, engineers, principals, and material and equipment suppliers. Accounting, insurance, surety, software, legal, and banking specialists who serve the construction industry are also represented.
  • Insurance Services Office (ISO) ISO supplies data, analytics, and decision-support services for risk managers in all industries in fields, including: property/casualty insurance, mortgage lending, healthcare, government, human resources.
  • International Risk Management Institute Inc. (IRMI) provides risk and insurance information to business, legal, risk management, and insurance professionals. IRMI publishes a library of practical manuals, books, and newsletters and sponsors seminars and conferences including the annual IRMI Construction Risk Conference
  • National Association of Insurance Commissioners assist state insurance regulators, individually and collectively, to achieve fundamental insurance regulatory goals. Click on "States and Jurisdictions" to find U.S. state insurance departments' web sites.
  • National Council on Compensation Insurance (NCCI) manages a database of workers compensation insurance information. NCCI analyzes industry trends, prepares workers compensation insurance rate recommendations, determines the cost of proposed legislation, and provides services and tools to maintain a healthy workers compensation system.
  • National Underwriter Company (NUCO) publishes print, e-media and software products for the insurance and financial services industries.
  • The Surety & Fidelity Association of America (SFAA) is a trade association consisting of companies that collectively write surety and fidelity bonds in the United States.

Snakes in the Grass: Understanding Contractors' Risk Management and Insurance

Most sureties have identified “deal killer” issues that present undue risk to the client’s bottom line or to that of the surety. There are similar risk management and insurance issues that present undue risk to the client’s bottom line or to that of the surety, including the following:

  • Manuscript or restrictive additional insured endorsement from subcontractors;
  • Exclusions in the Commercial General Liability (CGL) policy such as broad residential exclusions, subsidence exclusions which also exclude bodily injury;
  • Joint venture exclusions showing up in the CGL and excess policies;
  • Non-drop down provisions in the excess when there is a broader underlying policy;
  • OCIP (Owner Controlled Insurance Policy) programs with short completed operations tails, low limits, or limits shared between dissociated projects, and unfunded self-insured retentions; and
  • Pollution policies which include mold coverage, but exclude it for damage to the work in progress.

Do not overlook insurance coverage as an important avenue of financial protection and financial risk. It is essential to dig into the details of each policy and to make sure that the insurance underwriter has clarified any coverage questions and that the client has adequately sought solutions to protect themselves from uninsured or unfunded exposures that can materially impact the client’s financial statement.