Changes in Insurance ACORD Sheet Pose New Risk to Construction Industry
Many construction contracts, including AIA forms, contain language regarding proof of insurance and 30-day prior notice of cancellation. ACORD (the Association of Cooperative Operations Research and Development), the industry-standard licensing company for insurance forms, has amended its certificate of insurance form requirements so that the form no longer purports to give 30-days advance notice of policy cancellation.
This impacts all ACORD contracts and poses yet another new risk for the construction industry. A contractual notice requirement may not be available through most liability policies — and that could result in contractors and subcontractors inadvertently violating a number of their construction contracts or finding themselves with unintended gaps in insurance coverage. It is also important to note that altering the form may run afoul of state law.
To learn more about how this may impact your business or about how to bring your contracts up to date according to this standard, contact William J. Greagan (518.935.4220; firstname.lastname@example.org) or another member of Goldberg Segalla’s Construction Practice Group