Soft cost, or delay in the project completion coverage has been a hot topic of discussion and concern recently due to the unique claims scenarios that occur during a construction phase of a project. At first glance, the term “soft costs” seems easy to explain. But it's actually a more complex subject.

It is vital to understand specific terms found in insurance policies. The inability to do so may result in an unwanted surprise such as a lower than anticipated claim payment following a loss.  For example, Actual Cash Value (ACV) and Replacement Cost (RC) are two different methods of valuation that will determine how the insured is indemnified.

It should not be surprising that as technology evolves, so does the way that these innovations are implemented in everyday business. The construction industry tends to exemplify this notion, as new equipment that increases efficiency at the worksite is utilized and embraced. Construction giant, Komatsu, announced this month that it plans to release a series of drones that will be capable of providing the heavy lifting of the foundation work in new construction, deeming the process: “Smart Construction.” This includes equipment such as “aircraft, bulldozers, and excavators” operating unmanned, all of which could, drastically, change the landscape of construction contracting.

We are frequently asked what the difference is between an admitted and non-admitted insurance company. Related follow-up questions will often include: Is there a premium savings? Should I be concerned about coverage terms and conditions? Are there tax implications for my business?

There are several terms in the insurance industry that frequently are misused or confused. For example, the terms broker and agent are consistently used interchangeably; however, the role of each is very different and important.

A constant struggle for the risk manager of an organization is balancing the profitability expectations of its shareholders and maximizing operational efficiency of the risk management team in order to reduce the organization’s Total Cost of Risk (TCoR). Having a clear perspective of the organization's appetite for risk and risk tolerance is a fundamental element needed in order to achieve this balance.

Many companies are crossing national boundaries to exploit new opportunities and minimize any potential threats. Globalization brings both opportunities and risks to multinational enterprises (MNEs) doing business in another country, and requires the MNE to have a system in place to detect and respond to these potential threats and challenges.

IT-related threats originate from multiple angles, all of which require proper attention and application of mitigation techniques. Perhaps the biggest threat to a company’s IT security is their internal contacts (staff, vendors, contractors, etc.). Many companies are utilizing heightened IT security measures, but fail to account for the negligible or malicious actions from these internal contacts who often have high-level access to company systems.  Inside access often isn’t monitored and can easily lead to stolen data or corrupted systems.

As you may or may not have heard, there is currently a bill sitting in the New Jersey Legislature, which, if passed, would swiftly alter the landscape of commercial liability policies for New Jersey construction contractors.

Is your gross payroll more than $800,000? Do you know what your experience modification, or “mod” is? Is it above a 1.20 rating? If you answered yes to these questions then understanding the Industrial Code Rule 59 (“ICR59”) Program will save you money.