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# Contractors Face Hidden Coverage Gaps in Follow Form Policies
- URL: https://www.industrialbriefs.com/hidden-coverage-gaps-follow-form/
- Published: 2026-09-10T03:31:24.000Z
- Updated: 2026-09-10T04:00:46.000Z
- Description: Construction contractors are facing unexpected liability coverage gaps due to discrepancies in "follow form" insurance policies. This issue highlights the need for thorough verification of policy terms to avoid financial risks.
- Author: IndustrialBriefs
- Tags: construction, #enriched

![IB_KEY_FACTS:[{"stat":"Hidden Coverage Gaps","label":"**Follow form policies may not replicate underlying insurance terms.**","sublabel":"Contractors must verify excess liability coverage closely."}]](https://industrial-briefs.ghost.io/favicon.ico)

In a rapidly evolving construction industry, contractors are increasingly encountering unexpected liability coverage gaps in their excess insurance policies. This issue arises when "follow form" policies, which are expected to replicate the terms and conditions of underlying insurance, fail to do so, leaving contractors exposed to significant risks.

**What Happened**  
The concept of "follow form" [insurance policies](https://www.industrialbriefs.com/bechtel-sabine-pass-lng-contract/) is designed to provide additional layers of coverage that mirror the primary policy. However, industry experts, including Nathan Baumgartner, CPCU, CRIS, have highlighted that these policies do not always adhere to the expected provisions. Contractors may find themselves without the necessary coverage if they do not meticulously verify and understand the terms of their excess liability policies. This gap can result in unexpected financial liabilities if a claim is made that is not covered by the excess policy due to discrepancies in policy language or exclusions.

**What This Means for Your Business**  
For construction firms, the implications of these hidden gaps are substantial. Ensuring comprehensive risk management strategies are in place is critical. Contractors should conduct thorough reviews of their insurance policies and consult with insurance professionals to ensure that coverage aligns with project-specific risks. This verification process is not only crucial for compliance but also for maintaining competitive advantage in securing federal and private contracts. Misaligned or insufficient coverage could result in costly legal battles or financial losses, potentially jeopardizing future business opportunities and ROI.

**What US Operators Should Watch**  
Construction companies should prioritize regular audits of their insurance coverage, particularly before bidding on new projects. Operators need to be vigilant about changes in policy terms and seek clarity on any ambiguous language that could affect coverage. Staying informed about industry best practices and updates in insurance regulations will help contractors mitigate risks associated with excess liability gaps. Additionally, maintaining an open line of communication with insurance brokers can provide insights into potential policy changes that could impact coverage.

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*Source: \[Construction Dive\].* [*Read the original story ->*](https://www.constructiondive.com/spons/when-follow-form-doesnt-follow-form-how-contractors-can-avoid-hidden-ex/825230/?ref=industrialbriefs.com)