A construction project owner is not covered by the insurance policy it purchased for a claim arising when the structural engineer (an independent contractor to the architect) fell through the floor at the project site according to a recent Massachusetts Appeals Court decision. The case is Cable Mills LLC v Coakley Pierpan Dolan and Collins Insurance Agency Inc.; Certain Underwriters at Lloyd’s London 82 Mass. App. Ct. 415 (2012)
The Owner’s insurance said it would not cover claims for bodily injury arising out of “operations performed for you” by independent contractors. In upholding this exclusion the Court said the Owner’s insurance did not have to either defend the claim or pay it.
Message to Owners – get anyone who performs work for you – including consultants to architects to agree, in writing, to indemnify you as owner. You can go on the insurance of your vendors. Get advice on how to accomplish that.