ICFG Insurance Department Course of Construction Information Packet Page 1
ICFG Insurance Department INSURANCE FAQ FOR COURSE OF CONSTRUCTION Congratulations on expanding or constructing a new home for your congregation! We would like to take this opportunity to inform you of some things that are very important for you to consider as you start on this venture. The following is for you to review: Can Course of Construction or Builders Risk Insurance be covered through the insurance of the church? Yes, if the church participates in the ICFG Insurance Program, the construction project can be covered for Builders Risk. The cost of the additional coverage will be charged to the church insurance account. If the church doesn t participate in the Foursquare Insurance program, our recommendation is to secure this coverage immediately through their property insurance carrier. What is the limit on the coverage provided? Currently, the limit on the Course of Construction insurance that you can purchase though the Foursquare program is $5,000,000. If our projected construction estimate is more than $5,000,000, what do we do? If your projected construction is estimated to be more than the $5,000,000 limit, please notify the Insurance Department prior to your project being submitted to the Board of Directors for approval. You will be given a separate application to be completed for the entire projected construction cost through our Foursquare insurance broker to obtain a policy that will cover your project. The policy cost will be billed to your insurance account. What other information should we be aware of pertaining to Foursquare s recommendations or requirements? Before any construction begins, you should become familiar with Section 17 in the Handbook for the Operation of Foursquare Churches. If you do not have a copy of this handbook, call the National Church Office in order to secure one. It contains very important and key information. Is it better for the church to hire a licensed general contractor or use a volunteer in the church who knows contracting? It is recommended that the church hire a licensed general contractor, because the liability insurance will be the contractor s responsibility. Page 2
We would like to use volunteers on this construction project. Are volunteers covered? Volunteers are not covered by our insurance for construction work. We would like to serve as our own project manager, hiring sub-contractors on our own, what do we need to be aware of? The project manager needs to be a paid employee of the church. When hiring subcontractors, make sure they have general liability insurance, listing the church as additional insured and Workers Compensation insurance. Obtain copies of the certificates for the church file. See attached sample copies. If we hire a licensed general contractor, what should we know: You should be aware of the following: 1. They need to provide the church with a Certificate of Insurance for General Liability, naming the church (legal name) as an additional insured. 2. Obtain certificates that reflect insurance for XC&U (explosion, collapse and underground damage to property) liability; products and completed operations; and automobile liability. 3. They need to show proof of having current Workers Compensation Insurance and a current copy of their license. 4. It is the responsibility of the general contractor, if they have hired subcontractors, to insure that the subcontractors are current in their license and Workers Compensation Insurance, as well as liability. 5. Check to see if the contract has a hold harmless or indemnity clause, which releases the general contractor from negligence and liability. DO NOT SIGN IT, until it is reviewed by the legal department at ICFG. During the Course of Construction, how can we be sure the work is being done on time, and within budget, by the general contractor? Be sure to include in your contract with the general contractor that all change notices are to be reviewed and signed by the church s project manager before any change orders are given to the sub-contractors. When the job is complete, what should we get from the general contractor? Before you give the general contractor the final payment, be sure to obtain the signed final unconditional release. This prevents the supplier from coming to you to receive payment on supplies purchased by the general contractor. You should also receive a certificate of occupancy from the local governmental agency. When should we inform the ICFG Insurance Department of our intent to build or remodel? As soon as you have hired the general contractor or at least two weeks prior to the start date. Please notify your Foursquare insurance representative so they can complete the Course of Construction Notification form located in this packet. Page 3
Are materials that are out in the open covered in the event of theft? If you have hired a licensed general contractor; the materials belong to that company until the material is attached to your building. If the church has a person on payroll who acts as a project manager, then the materials must be on the grounds of the church, behind a gate that is locked. When do we notify the Insurance Department that we have an occupancy permit? As soon as possible. If you have any more questions with regard to necessary insurance issues for your construction project, please feel free to call your representative at 1-888-635-4234, ext. 4400. Page 4
SAMPLE Proof of Insurance (3 Pages) Page 5
Page 6
Page 7
Page 8