Every significant construction project needs a Builders Risk policy.
Sounds simple enough, but the process of procuring the correct Builders Risk policy starts with an understanding of the project costs, construction timeline, and imagining potential claim scenarios. When an insured purchases an insurance policy, there is an expectation if a loss occurs; the insurance company will make the insured whole again. This only happens when a Builders Risk policy is designed correctly. The key to policy design is understanding and identifying the values at risk and how those values align with the actual insurance policy definitions.
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Topics:
Construction,
Construction Premiums,
Construction Project Risk,
Real Estate,
Real Estate & Development Risk Management,
Risk Management Blog,
Strategic Risk Management,
The ALS Group
Site Security
Protecting a Project’s assets is at the top of the list for most Developers and Lenders these days. Whether it be finances, property, or business, setting up some type of a security blanket for your project assets always adds additional comfort to the certainty of the project and desired outcomes. Most of the time these everyday risks can be covered through insurance; but what do you do when you are faced with protecting a growing (maturing) asset?
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Topics:
Construction,
Construction Project Risk,
Construction Workplace Safety
The construction industry is changing rapidly and more and more projects are relying on emerging technologies for management and completion. There are now major cyber related concerns regarding “smart” equipment such as cranes and drones and SAAS/IAAS systems used for project planning and management. ‘Connected’ systems utilized by third-parties (general contractors and subcontractors) to share and centralize sensitive data may also expose a project to cyber risks.
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Topics:
Construction,
Construction Project Risk,
Manage Construction Risk,
Risk management,
cyber attacks
Take a casual stroll in Manhattan and you can't help but notice that construction is booming. Cranes, scaffolding, and sidewalk sheds are everywhere. And this isn’t just a New York City phenomenon. Ground-up construction and renovation projects are picking up all across the country. Low interest rates and favorable building conditions are resulting in a surge in real estate & development projects.
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Topics:
Construction,
Construction Accidents,
Construction Project Risk,
Construction Workplace Safety,
Real Estate & Development Risk,
Risk Management Blog,
Worker's Compensation
The New Jersey Supreme Court recently reversed its position on coverage for construction defects, affirming the Appellate Division’s decision that consequential damages caused by a subcontractor’s faulty workmanship constituted “property damage” caused by an “occurrence” under the plain language of the developer’s Commercial General Liability (CGL) policy.
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Topics:
Claims Management,
Commercial General Liability Coverage,
Commercial General Liability Insurance Risk,
Construction Project Risk,
NJ Supreme Court Cypress Pointe v Adria Towers,
Real Estate,
Real Estate & Development General Liability,
Real Estate & Development Risk Management,
Risk management,
Risk Management Blog
A case in point is the super sleek and very expensive Millennium Towers building in San Francisco. According to reports from independent consultants, the 58 story building has sunk about 16 inches and tilts about two inches to the Northwest. Settling is a natural process in any construction project and architects and engineers build that into their model; however, 16 inches since 2008 is a cause for concern. And, the sinking isn’t over. According to the August 9th article in Curbed San Francisco, the building is predicted to drop an additional eight to 15 inches into the ground.
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Topics:
Construction,
Construction Defects,
Construction Project Risk,
Millennium Towers San Francisco Sinking,
Millennium Towers Sinking,
Risk Management Blog
Have you protected your worksite from Rattata yet? How about Pidgey or Staryu?
Who? They’re just a few characters from Pokémon Go, the augmented reality game craze that’s got people showing up at PokéStops in all sorts of random places, hoping to track down Pokémon characters on their mobile devices. With more than 30 million users (more than 20 million registered users in the US alone), the game takes players out into real world locations, including retail stores, office buildings, train stations and even construction sites.
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Topics:
Construction,
Construction Accidents,
Construction Project Risk,
Pokemon Go Construction Site Accidents,
Pokemon Go Mishaps,
Risk Management Blog,
Safety and Compliance
A critical step of any contractual agreement between property owners and managers and their vendors (including contractors) is a careful review of the provisions affecting insurance and legal indemnification. The difference between a thoughtfully negotiated contract and one that is “off the shelf” or, even worse, none at all may be the difference between accepting liability where never intended.
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Topics:
Construction,
Construction Project Risk,
Contracts,
Indemnity,
Risk Management Blog
The construction and real estate industry continue to grow and so do the risk exposures from a fundamental inconsistency between a contract’s commercial intent and insurance policy language. “Additional Insured” is a very common requirement in a real estate or construction contract and many times there is a distinct lack of specificity with what is, actually, being required and why the provision is appropriate. Additional Insured status provides vicarious liability coverage to an outside entity, usually, an owner or general contractor, under the subcontractor’s policy. It is often a requirement in construction contracts, and it can be the source of insurance disputes if not handled correctly given the changes in the regulatory framework of today’s insurance policies.
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Topics:
Construction,
Construction Accidents,
Construction Premiums,
Construction Project Risk,
Insurance,
Limit of Liability,
Property Risk,
Real Estate,
Risk management,
Risk Management Blog,
Strategic Risk Management,
The ALS Group,
Total Cost of Risk
One of the areas often overlooked, but vital to an insured, is the defense costs coverage a liability policy provides. As some insureds may be aware, there are two types of defense costs payments, those policies that pay “in addition” to the limits and those whose payments are “within” the policy limits.
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Topics:
Construction Project Risk,
defense costs,
Employment Practices,
Fiduciary,
General,
Liability,
Limit of Liability,
Risk management,
Risk Management Blog,
Strategic Risk Management,
Total Cost of Risk
