A majority of time our insureds obtain builders risk coverage and add the general contractor to the policy as an additional insured. Of course, builders risk policies are for the most part dirt cheap, so the charge back is insignificant in the grand scheme of things.

From a protection standpoint I agree this is the best route for the insured. However, from a claims standpoint it is frustrating to cover losses that are clearly a result of the general contractor's or one of its subcontractors' negligence and not be able to subrogate the responsible party, either because they are additional insureds or there is a strong hold harmless agreement in the building contract. Therefore, the general contractor's general liability form would not respond.

Do you have any ideas for underwriting so we could protect the insured yet still hold the contractor responsible for negligence?. Or is this issue a dead horse when thinking along the lines that this risk is built into the premium, and so the claims department should just grin and bear it?