Construction risk insurance fundopens in new window

The Construction Risk Insurance Fund (CRIF) is a non-profit organization that provides insurance coverage to construction contractors and subcontractors in the United States. Here's an overview of the fund:

Purpose: The CRIF was established in 1982 to provide financial protection to construction contractors and subcontractors against unforeseen events that may occur during the construction process. The fund is designed to help mitigate the financial risks associated with construction projects, such as delays, cost overruns, and disputes.

Coverage: The CRIF offers a range of insurance products, including:

  1. Construction Risk Insurance: This policy provides coverage against unforeseen events that may cause delays, cost overruns, or disputes during the construction process. The policy covers losses resulting from events such as labor disputes, weather-related delays, and unforeseen site conditions.
  2. Payment Bond Insurance: This policy provides coverage against non-payment by the owner or contractor for work performed by the insured contractor or subcontractor.
  3. Performance Bond Insurance: This policy provides coverage against the failure of the insured contractor or subcontractor to complete the project as specified in the contract.

Eligibility: The CRIF is open to construction contractors and subcontractors who meet certain eligibility criteria, including:

  1. Membership: The contractor or subcontractor must be a member of the CRIF or have a valid membership application pending.
  2. Project Requirements: The project must meet certain requirements, such as a minimum project value, a specific type of project (e.g., commercial, residential, or industrial), and a specific geographic location.
  3. Financial Requirements: The contractor or subcontractor must meet certain financial requirements, such as a minimum net worth and a good credit history.

Benefits: The CRIF offers several benefits to its members, including:

  1. Financial Protection: The CRIF provides financial protection against unforeseen events that may occur during the construction process.
  2. Risk Management: The CRIF helps contractors and subcontractors manage risk by providing coverage against potential losses.
  3. Cost Savings: The CRIF can help reduce the cost of insurance premiums by providing a pool of funds to share among members.
  4. Expertise: The CRIF provides expertise and guidance to its members on construction risk management and insurance.

How it works: The CRIF operates on a self-insurance basis, where members pool their premiums to create a fund that is used to pay claims. The fund is managed by a board of directors, which is responsible for setting premiums, determining coverage limits, and making claims decisions.

Overall, the Construction Risk Insurance Fund is an important resource for construction contractors and subcontractors, providing financial protection and risk management expertise to help mitigate the risks associated with construction projects.