Wednesday, November 4—Afternoon Workshops (select two from W6-W12)
A party who requests additional insured status on a contractor’s policy almost
certainly has the expectation that its own policy will not be required to share
in a loss until the contractor’s full limit of coverage is exhausted, including
the umbrella or excess layers. Recently, however, some courts have applied a
horizontal exhaustion approach, which requires the additional insured’s own
CGL policy to be exhausted before the contractor’s excess or umbrella policy
is triggered. In most cases, this outcome is contrary to both contracting parties’
expectation and intent. This workshop will outline some pivotal decisions regarding
horizontal versus vertical exhaustion and then outline strategies for avoiding
horizontal exhaustion.
Mark E.
Christensen, Managing Partner, Christensen & Ehret
Richard Subak, Account Executive, Aon Construction Services Group
The stimulus bill passed earlier this year is expected to generate demand
for certain types of construction, much of it in the public sector and a significant
portion in the federal market. With demand for residential and commercial building
construction down, many contractors may find themselves venturing into the public
sector for the first time and in need of an introduction to the ins and outs
of working for the federal government. This workshop highlights key laws, rules,
and other risks contractors must be aware of and incorporate into their risk
management processes when working on a federal project. Learn about the unique
ethics requirements with which federal contractors must comply, the impact of
the Buy America Act, key differences in dispute resolution and subcontractor
payment obligations, and more.
Bennett D.
Greenberg, Esq., DBIA, Partner, Seyfarth Shaw LLP
Michael C.
Loulakis, President/CEO, Capital Project Strategies, LLC
Captive insurance companies offer contractors a number of benefits, including
the opportunity to reduce price fluctuations in their insurance program and
access to coverages that may not be available in the commercial insurance market.
When the market begins to harden, the interest in captives always grows accordingly.
However, captives are not the best solution for every contractor, and the decision
to form a captive requires a thorough examination of the contractor’s objectives,
appetite for risk, funding capabilities, and more. Further, captives come in
different forms and are not a “one-size-fits-all” commodity. This workshop walks
through the decision-making process contractors should go through in evaluating
whether and how to form a captive. Attendees will leave with practical resources
and insights into this complicated process.
Bruce J. Moldow,
Executive Vice President/Chief Legal Officer, Moss & Associates, LLC
W. Scott Trethewey,
Executive Vice President, Moss & Associates, LLC
Building “green” is the fashionable trend, but it also introduces some inherent
construction risks that may increase the potential for construction defects.
By identifying and understanding the nature of these “hidden” technical risks
before beginning the project, contractors, owners, architects, and insurance
companies can minimize the likelihood of an unpleasant, time-consuming, and
costly construction defect claim. This workshop outlines the hidden technical
risks in green projects that create, or expand, the chance of failure for certain
aspects of the project.
George H. DuBose,
Vice President, Liberty Building Forensics Group®
Driven by both economic and environmental factors, the market for renewable
energy is expected to grow to over $200 billion in the next 10 years. How are
the construction insurance markets, particularly builders risk underwriters,
expecting to respond to this wave of development? Should they simply adapt existing
insurance products to “fit” these new technologies? Or are we looking at a new
wave of product development specifically geared for the “green” energy sector?
This presentation focuses briefly on the renewable sources themselves and then
examines how well the existing insurance products fit the exposures of the renewable
power construction project. Practical examples are presented along with standard
industry coverage wordings to highlight potential gaps and conflicts.
Dean T. LaPierre,
P.E., Senior Vice President, Mercator Risk Services, Inc.
The completed operations exposure is more troublesome to many contractors
than the ongoing operations risks. Common completed operations questions include:
Who can bring claims against the contractor? When, if ever, does the contractor’s
exposure from completed work end? What protections are afforded under statutes
of limitations and statutes of repose? Is the completed operations exposure
different under different methods of construction, such as design-build and
construction management? When construction firms merge or are acquired by another
firm, does the buyer face the potential of unlimited liability for all of the
contractor’s past projects? This session answers all of these questions, and
more, and offers steps for minimizing and managing the completed operations
exposure.
Gerald I. Katz,
Senior Partner, Katz & Stone, L.L.P.
Maritime risks are sometimes perceived as only applying to contractors working
directly on maritime projects. In reality, many contractors stumble into maritime
exposures unknowingly. In some cases, the exposure is so obscure the contractor
is not aware that it exists, and the contract documents rarely stipulate that
coverage for these risks is required. As infrastructure projects gear up, more
contractors will need an understanding of the various maritime statutes to avoid
not only a violation of the law but also a potentially significant uninsured
claim.
Francis V.
Liantonio Jr., Partner, Adams and Reese LLP
Mark J. Spansel,
Partner, Adams and Reese LLP