2007 AIA 201 - Insurance Provisions

The 2007 AIA 201 contains some significant changes from the 1997 AIA 201. The article addressing insurance, among other provisions, caused the American Subcontractors Association to withhold its endorsement of the 2007 changes. This is not surprising given the shift of risk to the subcontractors. The AIA 201 changes require the subcontractor to maintain both operations hazard coverage and completed operations coverage for each project. In short, operations hazard covers third-party claims for bodily injury and property damage that occur during the course of the project. Completed operations coverage covers third-party claims for bodily injury and property damage for a period of time after the project is complete and work has stopped. The AIA 201 requires that this completed operations coverage stay in place for any maintenance period or for a period specified in the contract documents. Furthermore, the changes to the AIA 2007 significantly increase the project participants who must be named as an additional insured to the subcontractor's policy. For operations hazard coverage, the subcontractor must name the general contractor, the owner, the architect and the architect's consultants. For completed operations hazard coverage, the subcontractor must name the general contractor as an additional insured.

For further information, contact Matt Hjortsberg at 410-583-2400 or Hjortsberg@bowie-jensen.com.