The audio portion of the conference may be accessed via the telephone or by using your computer's speakers. Please refer to the instructions emailed to registrants for additional information. If you have any questions, please contact Customer Service at 1-800-926-7926 ext. 10. Presenting a live 90-minute webinar with interactive Q&A Builder's Risk and CGL Insurance for Construction Projects: Mitigating Developer and Contractor Risks Evaluating Scope of Coverage, Covered Losses, Policy Exclusions, Additional Insured Endorsements and More Today’s faculty features: 1pm Eastern | 12pm Central | 11am Mountain | 10am Pacific TUESDAY, AUGUST 2, 2016 Jennifer A. Cranston, Shareholder, Gallagher & Kennedy, Phoenix James M. Hoey, Partner, Clausen Miller, Chicago John R. Musitano, Jr., Partner, Cox Castle & Nicholson, Los Angeles
Transcript
The audio portion of the conference may be accessed via the telephone or by using your computer's
speakers. Please refer to the instructions emailed to registrants for additional information. If you
have any questions, please contact Customer Service at 1-800-926-7926 ext. 10.
Presenting a live 90-minute webinar with interactive Q&A
Builder's Risk and CGL Insurance for
Construction Projects: Mitigating
Developer and Contractor Risks Evaluating Scope of Coverage, Covered Losses, Policy Exclusions,
• Evidence of liability insurance policies, including key policy terms (carrier, named insured, policy term, limits, cancellation, additional insureds)
• Key Issues Not binding on insurer
Named Insured
Limits and policy period
Cancellation
11
Certificates of Insurance
12
Types of Insurers/Ratings
• Types of Insurers
• Ratings by A.M. Best
Company
Financial Strength Rating
Financial Size Category
13
Builder’s Risk Insurance
• Property Policies
• Builder’s Risk Overview
• Compare vs. Standard
Commercial Property and CGL
Policies
14
Builder’s Risk Insurance
• Property/Interests Covered
Property covered
Property not covered
15
Builder’s Risk Insurance
• Property/Interests Covered
Parties and additional interests covered
When is the property covered
16
Builder’s Risk Insurance
• Coverage Scope – Physical
Loss and Damage
Requirement for direct physical loss and damage
Key issues
17
Builder’s Risk Insurance
• Coverage Scope – Perils
Covered
Policy types “All Risks” or “Special Causes of
Loss”
“Named Perils” or “Basic Form”
Policy forms
18
Builder’s Risk Insurance
• Cover all damage during
construction
Key Exclusions, including faulty workmanship
Exceptions to exclusions
19
Builder’s Risk Insurance
• Valuation of Loss
Insurable value of project
“Replacement cost” means the actual cost to repair or replace the damaged property, without depreciation
Compare, “Actual cash value” means the value of the property at the time of loss, in its depreciated condition
20
Builder’s Risk Insurance
• Limits
Policy limits
Coinsurance
Agreed Amount Endorsement
Policy sublimits
21
Builder’s Risk Insurance
• Soft Costs/Business Interruption
Coverage
Soft costs coverage
Delay claims/business interruption coverage
22
Builder’s Risk Insurance
• Waiver of Subrogation
• Third Party Policies
• By endorsement – an express
subrogation waiver endorsement
from the carrier is required
• Automatic waiver – many policies
allow an insured to waive the
carrier’s right to subrogate as long as
the insured’s agreement was
executed per a written contact before
the loss
23
Builder’s Risk Insurance
• Key Policies Conditions
Notice and proof of loss
Suit Limitations
24
Commercial General Liability
Insurance
• CGL Policy Types
• CGL Policy Forms
25
Commercial General Liability
Insurance
• Coverage for Bodily Injury and
Property Damage
• Personal and Advertising Injury
Coverage
• Duty to Defend and Duty to
Indemnify
26
Commercial General Liability
Insurance
• Key Construction-Specific CGL
Issues
Triggers of Coverage
Construction defect as an occurrence
27
Commercial General Liability
Insurance
• Timing of Property Damage
Damage/loss occurring during policy period
Progressive losses
Allocation between multiple policy periods and insurers
28
Commercial General Liability
Insurance
• Other procedural issues
Jurisdictional split over coverage for post-demand but pre-lawsuit repairs
Timing of tender and insurer’s approval of settlement
29
Commercial General Liability
Insurance
• Policy Limits Per “occurrence” limit
General aggregate limit
Products/completed operations aggregate
• Defense costs inside or outside limits?
• “Per Project” Aggregate Limits Endorsement
30
Commercial General Liability
Insurance
• Who is an Insured?
• Named Insureds, Additional
Named Insureds, automatic
insureds
31
Commercial General Liability
Insurance
• Excess Liability Policy
• Umbrella Policy
32
Commercial General Liability
Insurance
• Deductibles
• Self-Insured Retentions
33
Commercial General Liability
Insurance
• Interplay with Builder's Risk
Coverage
CGL coverage excess of builder's risk coverage
CGL exclusions for damage to project during course of construction
Exclusions applicable to property damage during ongoing operations
34
Addressing Builder’s Risk And CGL
Interface
• Negotiating policy forms
• Noninsurance risk
management strategies
• Managing dual track tenders
35
THANK YOU!
John R. Musitano, Jr., Esq. Partner Cox, Castle & Nicholson LLP 2029 Century Park East Suite 2100 Los Angeles, CA 90067 P: 310.284.2212 E: [email protected] www.coxcastle.com
Jennifer A. Cranston, Esq. Shareholder Gallagher & Kennedy PA 2575 East Camelback Road Suite 1100 Phoenix, AZ 85016 P: 602.530.8191 E: [email protected] www.gknet.com
James M. Hoey, Esq. Partner Clausen Miller PC 10 South LaSalle Street Chicago, IL 60603 P: 312.606.7493 E: [email protected] www.clausen.com
