The Florida Legislature recently passed a new law that allows state agencies, as of October 1, 2004, to purchase owner-controlled insurance in connection with a public construction project, if necessary and in the best interest of the public agency. However, an agency may only purchase such insurance if the estimated total cost of the project is for any of the following three amounts: $75 million or more on any project, $30 million or more for two or more public schools in one year, or $10 million or more for one public school. Projects for the Department of Transportation, and projects which were advertised or begun before October 1, 2004, are specifically excluded.
Insurance Programs Requierments
Other requirements include that the bid or proposal must specify the insurance coverage that will be provided and the minimum safety requirements that must be met, that the contractor or subcontractor must not be prohibited from purchasing any additional insurance, and that the program maintains insurance for the minimum of 5 years. The agency is responsible for the payment of all deductibles. The program, however, must not include surety insurance.
Owner-Controlled Insurance Programs for Public Construction Projects: Construction Law
As an additional protection, liability insurers must offer the contractors involved in the above projects additional coverage for current or completed operations for any period beyond the period for which the program provides liability coverage. The period of such additional coverage must be sufficient to protect contractors against liability for actions brought against them within the applicable statutory time period.