The sharpest divergence in North American construction insurance is not at the pricing level – it is at the coverage level, and it is growing. US insurers have replaced London Engineering Group 3 clauses with proprietary wording, including strict defect definitions, higher deductibles and embedded sublimits that reduce recovery on losses caused by the contractor. In Canada, LEG3 coverage remains standard, although legal disputes over the distinction between damage and fault have limited the market to the 1996 version rather than the updated 2006 version. For brokers advising on cross-border or large-scale construction programs, the difference between American and Canadian placement at coverage level is no longer a technical footnote, but a material program design consideration.
US and Canadian construction insurance coverage levels diverging & more related News Here
