New law requires contractor general liability insurance to include products and completed operations coverage

Producers who write coverage for the more than 45,000 Oregon contractors licensed through the Construction Contractors Board (CCB) need to be aware of changes in the law that take effect January 1, 2008.

House Bill 2654, passed by the 2007 Legislature, institutes multiple changes for contractors, including a requirement that general liability insurance coverage include products and completed operations coverage “according to the terms of the policy and subject to applicable policy exclusions.” New policies for contractors written on or after January 1, 2008, will need to include this coverage. Existing policies will need to comply with the law on their renewal date on or after January 1.

The CCB is in the process of finalizing rules to outline the required format for certificates of coverage provided by producers. The certificate of coverage will need to reflect that products and completed operations coverage is included.

The easiest way to provide the CCB with proof of coverage for your contractor clients is to sign up for the CCB’s “Online Insurance Entry Access.” Over half of the certificates for contractors are now done online, which simplifies the process for producers and for the CCB.

An agent certification statement must be signed and provided to the CCB in order to participate in the online program. For more information, you can go to the CCB Web site at http://ccb.state.or.us or send an e-mail to ccb.info@state.or.us.

Instructions outlining the requirements for the new certificates will be sent to contractors prior to their insurance renewal. If you wish to continue to provide paper certificates, you will need to follow the new instructions to assure that your insured’s documentation is correct.