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.