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
Situation
A NY-based organization (acting as tax syndicator) with over 350 properties engaged us to review and modify the lender requirements and to ensure insurance compliance with the requirements from the various parties involved in a deal
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Topics:
Claims Management,
Real Estate,
Real Estate & Development General Liability,
Real Estate & Development Risk,
Real Estate & Development Risk Management,
Strategic Risk Management,
Client Success,
COI Compliance
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
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
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.
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Topics:
Construction,
Construction Premiums,
Construction Project Risk,
Real Estate,
Risk Management Blog,
Strategic Risk Management,
The ALS Group
Jury verdicts for premises liability against those who own or manage land, stores, taverns, shopping malls and apartment complexes just keep climbing. A few California verdicts include a $7.5 million judgment after a chiropractor slipped and fell in a Starbucks and a $55 million verdict for a gang-related shooting against a security company that oversaw on-site safety at an apartment complex.
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Topics:
Claim Reporting,
Claims Handling,
Claims Management,
Construction,
Limit of Liability,
Property Risk,
Real Estate,
Risk Management Blog,
Strategic Risk Management,
Total Cost of Risk (TCoR)
Each week, landlords and authorities discover 300 methamphetamine labs in the United States, according to National Public Radio. If you own apartments, rent hotels or run boarding homes, you may run into a tenant who decides your rental properties are a great place to cook meth. Better check your commercial property policy now, because recent changes in commercial property insurance coverage forms may significantly restrict coverage for the resultant clean-up from meth “cooking” operations.
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Topics:
Construction,
Political Risk,
Property Risk,
Real Estate,
Risk Management Blog,
Strategic Risk Management,
TCoR,
The ALS Group,
Total Cost of Risk,
Total Cost of Risk (TCoR)
One of the most commonly found clauses in any construction contract is the requirement of one party to name another party as an additional insured. It is found in The American Institute of Architects (AIA) documents, the Consensus DOCS, and was inserted in almost all manuscript agreements.
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Topics:
Claim Reporting,
Claims Handling,
Claims Management,
Claims Management Process,
Construction,
Construction Accidents,
Healthcare,
Human Capital,
Real Estate,
Risk Management Blog,
Strategic Risk Management,
Total Cost of Risk,
Total Cost of Risk (TCoR),
Worker's Compensation
