The motel that Architex built for CIS was considered a total loss before CIS could even move in. The subcontractor that Architex hired to pour the foundation did not install any rebar. The poor foundation resulted in a motel that could never be occupied. CIS sued Architex for the total loss.

Scottsdale, Architex's carrier, declined coverage because the lack of rebar was an intentional act and therefore excluded. Architex argued that the subcontractor, not Architex, committed the intentional act.

Click here to review the appellate decision on this court case.

General contractors usually contract with multiple contractors in order to complete projects. Those subcontractors are not insureds under the general contractor's policy and are not the general contractor's employees. The general contractor's responsibility is to supervise those subcontractors and to complete the contracted project in an acceptable manner. Architex did not complete the project as expected and it was due to an intentional act. However, neither Architex nor anyone considered an insured under its Commercial General Liability (CGL) coverage committed the intentional act.

Click here for an analysis of the Expected or Intended Injury exclusion in the CGL.

General contractors have significant liability exposures but often limited payroll. Some general contractors subcontract out all work to subcontractors. Writing these high-exposure but limited-payroll risks can be difficult. However, there are many excellent general contracting risks that can produce sizable premiums in addition to excellent access to their many subcontractors.

Click here for the General Contractors narrative from the Producer's Commercial Lines Risk Evaluation System.

A reliable surety bond market is important to many general contractors. The agent who can supply the surety bond is often the agent who gets the first chance to write the rest of the account. If you have access to such a surety, consider using that access as your entrance point to a new account.

Click here for a Business Building Letter you can use as a starting email or letter to solicit a potential contractor client.