Tuesday, November 3—Afternoon Workshops (select two from T1-T8)

T1. Risk and Insurance Implications Due to Project Delays

The planning was impeccable. The insurance was negotiated and accepted. The foundation and surrounding infrastructure were erected … and then the dreaded project delay occurs. What happens now? This workshop will provide a brief introduction and overview of project delays and their causes/effects and then discuss in detail the financial and legal implications of a project delay for owners as well as contractors, including the impact on the insurance program. Mitigation strategies and methods for preventing or addressing project delays will also be examined.

Alejandra Evans, Executive Vice President of Business Development, Allied North America
William Noonan, Vice President—Risk Management, Structure Tone Organization
Tracy Alan Saxe, Attorney, Saxe Doernberger & Vita, P.C.

T2. Understanding Risk Financing Options

As contractors anticipate an eventual hardening of insurance markets, many are looking beyond the comfort of guaranteed cost insurance programs and reevaluating alternative risk financing options that involve varying degrees of risk retention. This session will review the various risk financing alternatives available to contractors, including incurred loss and paid loss retros, investment credit retros, deferred premium retros, large/matching deductible plans, self-insurance, and group and single-parent captives. Pros and cons of each method will also be addressed.

Michael J. O’Neill, Executive Vice President, American Contractors Insurance Group, Inc.

T3. Construction Enterprise Risk Management

The financial crisis of 2008-2009 demonstrates the need for construction executives to aggressively identify and manage not only their property and liability risks but a variety of corporate risks, as well. As contractors encounter new and growing risks, including loss of funding that can shutter a project to emerging liability stemming from new “green” building products, many are realizing the benefits of looking at the overall company risk profile and developing integrated solutions that enable them to systematically identify and mitigate risk. This presentation will review the importance of ERM and show contractors how they can establish and implement ERM programs on both a company-wide and project basis.

William D. Motherway, Executive Vice President, Tishman Construction Corporation
Jack Probolus, CIP Marketing Director, Liberty Mutual Group
George D. Tolbert, Technical Director—Construction Services, Liberty Mutual Group

T4. Builders Risk Insurance—Not Just Sticks and Bricks

Over the years, builders risk insurance has evolved from simple “sticks and bricks” policies to highly sophisticated mechanisms covering a complete range of course of construction risk exposures. Unfortunately, despite a vast array of builders risk products, many construction risks are not properly insured, and deficiencies in the program are not typically recognized until after a major loss occurs. This workshop will examine some key aspects of builders risk coverage, including covered parties, covered property, policy limits and sublimits, the basis of loss recovery, and other factors that may have an impact on the ultimate adjustment of a claim. Attendees will gain a better understanding of how builders risk losses are evaluated, as well as ideas for developing a program that minimizes the possibility of uninsured or underinsured losses.

Anthony J. D’Amico, Vice President/Senior Loss Consultant, Goodman-Gable-Gould/Adjusters International
Hayes M. Walker, III, President, Rollins Accounting & Inventory Services, Inc.

T5. Best Practices for Eliminating Crane Losses

Recent catastrophes involving cranes have created a renewed awareness of the potential dangers on a construction project. Contractors need to establish crane safety procedures, even if all crane work is performed by subcontractors. This workshop describes the most common causes of crane accidents and outlines best practices for eliminating crane losses, including key elements of a crane safety program and required safety procedures for avoiding accidents.

Kevin D. Bland, Esq., Partner, Granado Bland, APC

T6. Expectations for the Surety Market

For many contractors, the current economic realities present more than the usual number of challenges, particularly in the area of surety bonding. The continued trend of consolidation in the surety market, dwindling backlogs, and uncertainty about the short-term demand for construction all emphasize the contractors’ need to maintain an ongoing dialogue with their sureties. This workshop will provide an overview of current surety market conditions, underwriters’ chief concerns and requirements, and pricing trends. Strategies for maintaining bonding capacity and positioning for the changes in construction demand will also be provided.

Michael W. Anderson, Executive Vice President & Managing Director—Surety/North American Construction Practice, Willis

T7. Tips for Preparing Insurance Specifications

The preparation of quality insurance renewal specifications is crucial to obtaining competitive rates and preserving contractors’ scope of coverage, especially when insurance markets start to harden. Without a clear understanding of underwriters’ concerns, this task is virtually impossible to do in a way that will satisfy their need for information. As capacity tightens, an incomplete marketing submission is likely to be set aside in favor of those that provide more detailed answers to the questions underwriters care about. This session outlines the process for preparing a complete, professional underwriting submission and strategies for highlighting the client’s strengths that will improve the underwriter’s perception of the risk.

Steven D. Davis, Director—Construction Risk Services, McGriff, Seibels & Williams

T8. Risk Managers Forum

An interactive discussion of timely topics amongst risk management peers, attendance is restricted to individuals employed directly by construction companies or project owners (no agents, brokers, underwriters, attorneys, CPAs, or consultants, please). This workshop provides an open forum for discussion between owners, contractors, and subcontractors; affords an opportunity to learn how others in the industry are handling key challenges; and facilitates networking within the construction risk management community.

NOTE: The Risk Managers Forum does not qualify for insurance continuing education credit. Anyone attending this session will forfeit insurance CE credits for Tuesday afternoon.