Colorado Contractors Insurance Impacted By New Bill
The latest news is that Governor Ritter signed HB 10-1394 into law last Friday afternoon. As reported in the Insurance Journal:
Colorado Governor Bill Ritter has signed into law a bill changing retroactively the duty of insurers to defend contractor professionals in construction liability cases.
The bill (HB 1394) was opposed by insurers and agents, who have warned it could make liability insurance for contractors hard to find or very expensive. For that same reason, it was also opposed by the American Subcontractors Association of Colorado.
It was passed in response to a 2009 court decision in General Security Indemnity v. Mountain States Mutual, which excluded claims for certain construction defects and imposed no obligation to defend in a contractor’s professional liability insurance policy. The decision held that there was no duty to defend faulty construction work claims for faulty work performed by a general contractor’s subcontractors.
Lawmakers were concerned that the Colorado Court of Appeal decision did not adequately consider a construction professional’s reasonable expectation that an insurer would defend against a defect claim.
The bill was meant to restore some duty of the insurer to defend contractors in such claims. The new law now considers damage caused by the work of a construction professional — even damage to the work itself — as accidental, and eligible for coverage.
But critics say it goes too far, requiring the liability policy to almost guarantee the quality of a contractor’s work much like a bond. They say the general liability policy is meant to cover the consequential damage resulting from faulty work, but not the faulty work itself.
Also, the law makes the new rules retroactive, placing insurers in a position of having to defend claims that they never envisioned when current policies were written and priced.”It is likely that the bill will have adverse effects on the availability and affordability of insurance for construction professionals in Colorado,” said Kelly Campbell, vice president for Property Casualty Insurers of America (PCI). PCI had urged the governor to veto the measure.
Campbell said the retroactive rewriting of policies is likely unconstitutional. “One thing is certain, this bill will spawn litigation on these issues, which is not in the best interests of Coloradoans or the judicial system of this state,” Campbell said.
PCI said the law overturns existing Colorado law, “creating a set of insurance unique rules that would be applicable only to construction professionals, and is underscored by poor public policy that will only serve to incentivize poor workmanship in the construction industry.”
According to Campbell, the bill creates incentives for general contractors to use the least expensive subcontractors, regardless of the quality of their work, and serves to insulate construction professionals from the consequences of poor workmanship.
86 Responses to House Bill 1394 Impacts Contractors Insurance in Colorado
Trackbacks/Pingbacks
-
Thank you……
I was wondering if I could use this information in my website. I will provide a link to your blog, may I?…
Leave a Reply
Lots of great information and inspiration, both of which we all need, thank you for this.
This law makes it virtually impossible for any contractor to get insurance and therefore unable to perform work. Are there any loopholes in the law that can enable professional contractors to get insurance at a reasonable rate?
Hello, I observed your blog in a new directory of blogs. I dont know how your blog came up, must have been a typo, Your blog looks really. Have a great day.
There will always be ways to get insured, that is why it’s important to create broker realtionships, so they can keep you abreast to any changes in the insurance standards. Mountain Insurance Brokers is the premier broker in the denver metro area and I strongly advise you give them a call when any insurance needs or questions arise.
Great blog.Much thanks again. Fantastic.
I really loved this post. You explain this topic very well. It is key to find a firm with the experience and equipment to meet your complex commercial paving or residential decorative paving project. If you have a paving project for an institution or municipality and need decorative paving or excavation it is important to find the right contractor. It is important to pick a contractor that offers vast experience in custom residential, commercial and institutional infrastructure construction. It is also important that whoever you choose is committed to providing expert services and is committed to meeting and exceeding all Federal, State and Local safety standards.
Thanks for the advice. Will put it to work. Tom
I couldn’t agree more. As Insurance Agents, we take a couple classes and get our license. WE are responsible for protecting all of your assets and managing your risk. Doesn’t that sound very similar to law? Law School takes a lot more time than Insurance School and in a lot of instances Insurance Agents and depended upon for legal and liability advise. Kind of scary. It’s very important to find agents like the ones we have at Mountain Insurance Brokers. We take pride in educating our clients and giving the absolute best service.
hi-ya, I see all your blog posts, keep them coming.
You are absolutely a powerful writer. You absolutely know how to write to keep the audience engaged. I hope to read a lot more of your powerful writing style in the future.
It’s not often I can find stuff. Thanks for the post.
This is a nice blog i must say, usually i don’t post comments on others’ blogs but would like to say that this post really forced me to do so!
I really loved this post. You write about this topic very well. I really like your blog and I will definetly bookmark it! Keep up the interesting posts!
I really enjoyed this post. You describe this topic very well. I really enjoy reading your blog and I will definetly bookmark it! Keep up the super posts!
This is a nice blog i must say, usually i don¡¯t post comments on others¡¯ blogs but would like to say that this post really forced me to do so!
Insurance companies vastly improve their bottom line profits by engaging in unfair claims practices, reducing and manipulating claim payments. When you file an insurance claim, you are asking the insurance company to take money from its profits and return it to you as a liability. The company does not want to do this!
Your internet site is so quite fascinating and appealing. You understand how to make a business work.
I would like to thank you for the efforts you’ve created in composing this post. I’m hoping the same best work from you in the future as well. In fact your creative writing abilities have encouraged me to start my own BlogEngine weblog now.
Pretty insightfull post. Never thought that it was this straightforward after all. I have spent a great deal of my time looking for someone to explain this topic clearly and you’re the only one that ever did that. Great job! I look forward to reading more from you!
imagining along the same Thanks!
I feel you are too good to write Genius!Thanks for posting, maybe we can see more on this.
Thanks very much, its very nice article, this was the one I am looking for. Thanks again Thanks.
It’s not often I can find stuff. Thanks for the post.
Thank you for a great post.
I’ll gear this review to 2 types of people: current Zune owners who are considering an upgrade, and people trying to decide between a Zune and an iPod. (There are other players worth considering out there, like the Sony Walkman X, but I hope this gives you enough info to make an informed decision of the Zune vs players other than the iPod line as well.)
I agree 100%
I agree 100%
There is obviously a lot to know about this. I think you made some good points in Features also.
Thanks for sharing your weblog with all of us, very informative
I never thought of it that way, well put!
This is my first time visiting your blog. I found so many great ideas in your blog especially on the comment area. I guess I am not the only one having all the joy here, keep up the good work. Thanks.
I really liked this post. You explain this topic very well. It is important to find a firm with the experience and equipment to meet your complex commercial paving or residential decorative paving project. If you have a paving project for an institution or municipality and need decorative paving or excavation it is important to pick the right contractor. It is vital to hire a contractor that offers vast experience in custom residential, commercial and institutional infrastructure construction. It is also key that whoever you choose is committed to providing expert services and is committed to meeting and exceeding all Federal, State and Local safety standards.
I never thought of it that way, well put!
I really loved this post. You explain this topic very well. I really love your blog and I will definetly bookmark it! Keep up the interesting posts!
Doing some shopping and noticed your internet site appears a little messed up in my K-meleon internet browser. But luckily hardly anyone uses it any longer but you may possibly would like to look into it.
Another Fantastic blog post, I will be sure to save this in my Propeller account. Have a great night.
This a very great writeup by you hope to visit more very soon.
Right on!
I agree 100%
Great notice I recently upon your blog and have been reading along. I thought I would leave my primary comment. I don’t know what tolet it be knownexcept that I have enjoyed reading. Correct blog. I will keep visiting this blog very again. Your blog review here 2
You you should change the webpage subject House Bill 1394 Impacts Contractors Insurance in Colorado | Mountain Insurance Brokers | Denver Colorado Insurance Agency to more better for your subject you make. I liked the blog post even sononetheless.
Do you have trouble finding the perfect LOW Prices Luxury pens ? Birthdays, Christmas and Valentine’s Day, Mother’s Day, just to name a few, there are always times when we will be to find a unique gift.
Very informative post. Thanks for taking the time to share your view with us.
I really loved this post. You describe this topic very well. It is key to find a firm with the experience and equipment to meet your complex commercial paving or residential decorative paving project. If you have a paving project for an institution or municipality and need decorative paving or excavation it is key to hire the right contractor. It is important to choose a contractor that offers vast experience in custom residential, commercial and institutional infrastructure construction. It is also imperative that whoever you choose is committed to providing expert services and is committed to meeting and exceeding all Federal, State and Local safety standards.
By far the most concise and up to date information I found on this topic.
Great Post. I add this Post to my bookmarks.
You seem very knowledgeable in your field.
ok.
Thank You For This Post, was added to my bookmarks.
I find myself coming to your blog more and more often to the point where my visits are almost daily now!