Insurance & Liability Policy
This Policy describes the insurance coverages BDDI maintains, the insurance we require from project participants, and the indemnification framework we apply to every engagement.
Purpose
This Insurance and Liability Policy (the “Policy”) sets out the insurance coverages Blue Diamond Development Inc. (“BDDI”) maintains, the insurance we require from clients, contractors, subcontractors, and vendors, and the framework we use to allocate risk on every project we manage and every property we develop.
Insurance Maintained by BDDI
BDDI maintains the insurance coverages summarized below at all times. Limits, retention amounts, and specific endorsements are confirmed by certificate of insurance issued by our insurance broker on request.
| Coverage | Form | Limit |
|---|---|---|
| Commercial General Liability | Occurrence | $1M / $2M / $2M (per occ / agg / products) |
| Excess / Umbrella Liability | Following Form | $5M per occurrence and aggregate |
| Professional Liability / Errors & Omissions | Claims Made | $2M per claim / $4M aggregate |
| Workers’ Compensation | Statutory | State Statutory |
| Employer’s Liability | Each Accident / Disease | $1M / $1M / $1M |
| Commercial Auto Liability | Combined Single Limit | $1M (owned, hired, non-owned) |
| Builder’s Risk | Project-Specific All-Risk | Replacement Value |
| Pollution / Contractor’s Pollution Liability | Claims Made or Occurrence | $2M / $4M |
| Cyber Liability | Claims Made | $2M per claim |
| Property (Office Contents) | Special Form | Replacement Value |
We carry coverage from carriers rated A- or better by AM Best.
Insurance Required from Clients (Owner)
For any project under our management, the property Owner must maintain the following coverage:
- Owner’s Property Insurance: all-risk replacement-cost coverage on existing structures, including ordinance-or-law coverage.
- Owner’s Commercial General Liability: $1M / $2M minimum, with coverage extended to vacant land and any premises operations.
- Builder’s Risk: if the Owner provides Builder’s Risk in lieu of BDDI, coverage equal to full replacement value of work in place plus materials on site.
- Owner’s Excess Liability: $5M minimum, following form to underlying CGL.
- Environmental / Pollution: where the project involves redevelopment, demolition, or potentially impacted soils, the Owner must maintain Pollution Legal Liability of $2M minimum.
- Directors and Officers (where applicable): for sponsor entities raising third-party capital.
BDDI must be named as an additional insured on the Owner’s CGL and Excess policies on a primary, non-contributory basis with a waiver of subrogation in favor of BDDI.
Insurance Required from Contractors and Subcontractors
Every contractor and subcontractor working on a BDDI-managed project must carry, at minimum:
- CGL: $1M / $2M / $2M, occurrence form;
- Excess Liability: $2M (general trades) or $5M (specialty/high-hazard trades);
- Workers’ Compensation: state statutory;
- Employer’s Liability: $1M / $1M / $1M;
- Commercial Auto Liability: $1M combined single limit;
- Pollution Liability: $1M for trades with reasonably foreseeable pollution exposure (mechanical, plumbing, demolition, environmental remediation, fueling).
Contractor and subcontractor policies must name BDDI and the Owner as additional insureds on a primary, non-contributory basis, with waivers of subrogation in favor of BDDI and the Owner. ISO endorsement CG 20 10 (ongoing operations) and CG 20 37 (completed operations) are required.
Hold Harmless and Indemnification
To the fullest extent permitted by applicable state anti-indemnification statutes, each contractor, subcontractor, vendor, and tenant agrees to defend, indemnify, and hold harmless BDDI, the Owner, and their respective officers, directors, employees, agents, and lenders from and against any and all claims, demands, suits, judgments, settlements, fines, penalties, losses, damages, costs, and expenses (including attorneys’ fees and expert witness fees) arising out of or relating to (a) the indemnitor’s performance under the agreement, (b) the negligence or willful misconduct of the indemnitor, its employees, or its lower-tier subcontractors, (c) bodily injury or property damage caused by the indemnitor, or (d) the indemnitor’s breach of any insurance, safety, or compliance obligation.
This indemnity is intended to comply with the anti-indemnification statutes of every state in which we operate (including but not limited to California Civil Code § 2782, Texas Insurance Code Chapter 151, Wyoming Statutes § 30-1-131, and similar statutes elsewhere). Where any state law limits the scope of indemnification a contractor may give to a project owner or upstream party, the indemnity is automatically reformed to the maximum permitted by that state’s law.
Builder’s Risk and Course of Construction
For each project, either BDDI or the Owner will procure Builder’s Risk coverage on an all-risk basis with limits equal to the full replacement value of the work in place plus materials on site and in transit. Coverage extends to soft costs, ordinance or law, debris removal, expediting expense, and earthquake and flood where the site is in a designated zone. The named insured includes BDDI, the Owner, the construction lender, all contractors, and all subcontractors as their interests appear.
Workers’ Compensation and OSHA
Every party that has employees on a BDDI-managed project must maintain workers’ compensation coverage at statutory limits, including in any monopolistic state fund jurisdiction (North Dakota, Ohio, Washington, Wyoming). Project sites are managed in compliance with the Occupational Safety and Health Administration (OSHA) Construction Standards (29 C.F.R. Part 1926) and applicable state plan requirements.
Lender, Investor, and Tenant Insurance Requirements
Lender and investor insurance requirements are addressed in each loan or investment agreement. Tenant insurance requirements are addressed in the lease and typically include renter’s liability and personal property coverage of at least $100,000.
Environmental Compliance and Liability
BDDI maintains compliance with applicable environmental laws, including the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), the Resource Conservation and Recovery Act (RCRA), the Clean Water Act, the Clean Air Act, the Safe Drinking Water Act, the Toxic Substances Control Act, the National Environmental Policy Act (NEPA), and applicable state and local laws. Phase I and Phase II Environmental Site Assessments are conducted in accordance with ASTM E1527 and ASTM E1903 as appropriate to the property and intended use.
ADA and Fair Housing
BDDI designs and operates properties in compliance with the Americans with Disabilities Act (ADA), the Fair Housing Act, the Architectural Barriers Act, the Rehabilitation Act, and applicable state accessibility codes. Multifamily properties built for first occupancy after March 13, 1991 are designed to the seven design and construction requirements of the Fair Housing Act.
Limitation of Liability
The limitations of liability set out in our Terms of Service apply to this Policy.
Reservation of Rights and No Waiver
The required limits stated above are minimum amounts only. Higher limits may be required on a project-by-project basis where loss exposure justifies. Compliance with the insurance requirements does not relieve any party of any duty or obligation under the underlying contract or applicable law, and is not a waiver of any rights or remedies.
Updates
We may update this Policy. Material changes take effect thirty (30) days after posting.
Contact Us
Insurance, certificate-of-insurance, claims, and indemnity questions:
Blue Diamond Development Inc.
Attention: Risk Management
1501 South Greeley Highway, Suite C-3022, Cheyenne, WY 82007
Phone: (888) 851-1477
Email: derrick@bluediamonddevelopinc.com
Additional Insured Status and Endorsements
Where a contract requires BDDI or the Owner to be added as an additional insured to a third party’s policy, the additional-insured endorsement must be on a primary, non-contributory basis with respect to ongoing operations and completed operations. Acceptable endorsements include ISO CG 20 10 (ongoing operations), ISO CG 20 37 (completed operations), or equivalent forms. Endorsements that limit coverage to liability “caused by” the named insured (rather than “arising out of”) may be unacceptable depending on the project state’s anti-indemnification rules.
Wrap-Up Programs and OCIPs / CCIPs
Some projects use a wrap-up insurance program, including Owner-Controlled Insurance Programs (OCIPs) or Contractor-Controlled Insurance Programs (CCIPs). Where a wrap-up is in place, BDDI participates in the wrap-up consistent with the program’s enrollment requirements. Subcontractors enrolled in the wrap-up are required to maintain off-site coverage and any other coverage not provided by the wrap-up.
Surety Bonds
Where surety bonds are required by the lender, the Owner, or by applicable public-works statutes, BDDI coordinates the procurement of performance and payment bonds in the form, amount, and surety acceptable to the obligee. Bond amounts typically equal the construction contract amount, with payment-bond protection extending to lower-tier subcontractors and material suppliers. On public projects, bond requirements follow the federal Miller Act (40 U.S.C. § 3131) or the state Little Miller Act, as applicable.
Mechanic’s Liens and Lien Waivers
BDDI administers the mechanic’s-lien process consistent with applicable state law, including the form and content of lien waivers. Where a state prescribes a statutory waiver form (such as California Civil Code § 8132 et seq., Texas Property Code Chapter 53, Arizona Revised Statutes § 33-1008, Florida Statutes § 713.20, Georgia Code § 44-14-366, Mississippi Code § 85-7-417, Nevada Revised Statutes § 108.2453, Utah Code § 38-1a-802, and similar statutes in other states), we use that form. Conditional waivers are exchanged before payment; unconditional waivers are exchanged after payment clears.
Workers’ Compensation in Monopolistic States
In monopolistic workers’ compensation states (North Dakota, Ohio, Washington, and Wyoming), workers’ compensation is provided through the state fund. BDDI maintains coverage with each state fund where we have employees. Stop-gap employer’s liability coverage is maintained as a separate policy or endorsement to address employer-liability exposures not covered by the state fund.
Cyber Liability and Data-Breach Response
We carry Cyber Liability coverage that responds to data-breach response costs (forensics, notification, credit-monitoring services for affected individuals), regulatory defense, network security liability, business interruption from a covered cyber event, and ransomware response. We work with the carrier’s incident response panel to respond to any covered event.
Pollution Coverage and Environmental Risk Allocation
For projects with reasonably foreseeable pollution exposure (demolition, excavation in known impacted soils, mechanical scope with refrigerants or fuels, environmental remediation), Contractor’s Pollution Liability is required. For projects with known contamination, the Owner separately procures a Site Pollution Liability policy or Environmental Impairment Liability policy with appropriate coverage limits and term. Allocation of historical contamination liability follows the rules of CERCLA, the applicable state Brownfield statute, and the contract documents.
Drone, UAV, and Reality-Capture Operations
Where unmanned aerial vehicles or other reality-capture devices are used on a Project (for site documentation, marketing, inspection, or progress photography), the operator must hold a current Federal Aviation Administration Part 107 certificate, must comply with applicable airspace authorization requirements, must maintain Aviation General Liability coverage of at least $1,000,000 per occurrence, and must maintain Aviation Hull coverage where applicable.
Environmental, Health, and Safety Program
BDDI maintains an Environmental, Health, and Safety (EHS) program covering OSHA Construction Standards, applicable state OSHA-plan rules, fall protection, scaffolding, electrical safety, hot work, confined-space entry, lockout-tagout, hazard communication, silica exposure, lead exposure, asbestos awareness, respiratory protection, personal protective equipment, and emergency action planning. Project-specific safety plans, job hazard analyses, and toolbox talks are documented and retained.