Legal Problems Arising out of Highway Programs. Topic 20-04. Due Diligence for Insurance Coverage in Transportation Construction Contracts

Federal and State laws and regulations require that contractors provide evidence of insurance for road and bridge construction contracts over specified amounts. The insurance is required to cover general liability, workers compensation, automobile and other risks. The insurance also has required minimum limits of coverage. Each policy typically has exclusions for pollution liability or conditions of force majeure. Most construction contracts specify that the contractor file certificates of insurance showing the contracting agency as an additional named insured as evidence of coverage. This requirement is not enough to protect the contracting agency. Transportation officials need to know the extent of due diligence required to obtain the value of insurance that is specified. This due diligence will require a review and understanding of underlying insurance policy language. This report will summarize the important issues and troubling language encountered during a review of the underlying policies and provide recommended language and solutions. The objective of this research is to identify the most prevalent problems encountered in administration of these insurance policies and to illustrate solutions. The research will include a discussion of what contract language and specifications is recommended to protect the contracting agency. A checklist of points, positions, and recommended language to be verified during agency review will be provided. The research will identify resources available to the agency reviewer to assist in explanation of language in insurance policies.


  • English


  • Status: Active
  • Contract Numbers:

    Project 20-06, Topic

  • Sponsor Organizations:

    Federal Highway Administration

    1200 New Jersey Avenue, SE
    Washington, DC  United States  20590

    American Association of State Highway & Transportation Officials

    444 North Capitol Street, NW, Suite 225
    Washington, DC  United States  20001

    National Cooperative Highway Research Program

    Transportation Research Board
    500 Fifth Street, NW
    Washington, DC  United States  20001
  • Project Managers:

    McDaniel, James

  • Performing Organizations:

    Parker Corporate Enterprises, Ltd.

  • Start Date: 20140102
  • Expected Completion Date: 0
  • Actual Completion Date: 20150501
  • Source Data: RiP Project 38171

Subject/Index Terms

Filing Info

  • Accession Number: 01556449
  • Record Type: Research project
  • Source Agency: Transportation Research Board
  • Contract Numbers: Project 20-06, Topic
  • Files: TRB, RiP
  • Created Date: Mar 6 2015 1:00AM