Product Update

Small Deductibles Update and Revisions to Utah Statute of Repose in Construction Risk Management

This release of Construction Risk Management contains an update on the application of the Utah statute of repose and an updated discussion of small deductibles in guaranteed cost workers compensation programs.

The use of small deductibles in guaranteed cost workers compensation programs allows the insured to share the risk for a premium cost-savings. Generally, small deductible programs fall in the range of $2,500 to $75,000 depending on the jurisdiction. The vast majority of jurisdictions offer some form of small deductible with many providing plans that apply to both medical and indemnity (lost-time) claims. States with Small Workers Compensation Deductibles offers state-specific information about small deductibles, including the type of deductibles available, the range of the deductible amounts, the range of premium discounts, and how deductible losses are reported for unit statistical purposes (gross or net).

On March 24, 2020, the governor of Utah signed into law the provisions of House Bill 223, which made revisions to the statute of repose. The repose period of 6-years did not change, but a provision was added that if a construction services provider is expressly required by a contract or warranty to perform an obligation more than 6 years after completion (e.g., maintenance work) and fails to fulfill that obligation, a two year statute of limitations applies to any corresponding action for breach of contract or warranty.