Primary Author: Ms Dayna L Anderson
Co-Author(s): Mr Seth D Lamden
Audience Focus: Basic
Application Type: Application
Venue: 2015 AACE International Annual Meeting, Las Vegas, NV, USA
Abstract: Damage to work, materials, and equipment during construction can impair the ability of project stakeholders to meet budgetary and scheduling targets. Delays resulting from the repair and replacement of damaged work can lead to other unanticipated expenses, including lost revenue, additional carrying costs, and other so-called “soft costs.” Builder’s risk insurance is often the most effective way to manage these unanticipated costs and delays. However, the coverage provided by the builder’s risk policy should be consistent with the expectations of all parties that have an insurable interest in property related to the construction project. This article provides an overview of the types of coverage provided by a builder’s risk insurance policy and discusses policy provisions that can lead to coverage disputes between builder’s risk insurers and their insureds. This article also provides recommended practices for an insured to follow when presenting a claim to a builder's risk insurer to avoid or minimize the impact of coverage disputes.
Co-Author(s): Mr Seth D Lamden
Audience Focus: Basic
Application Type: Application
Venue: 2015 AACE International Annual Meeting, Las Vegas, NV, USA
Abstract: Damage to work, materials, and equipment during construction can impair the ability of project stakeholders to meet budgetary and scheduling targets. Delays resulting from the repair and replacement of damaged work can lead to other unanticipated expenses, including lost revenue, additional carrying costs, and other so-called “soft costs.” Builder’s risk insurance is often the most effective way to manage these unanticipated costs and delays. However, the coverage provided by the builder’s risk policy should be consistent with the expectations of all parties that have an insurable interest in property related to the construction project. This article provides an overview of the types of coverage provided by a builder’s risk insurance policy and discusses policy provisions that can lead to coverage disputes between builder’s risk insurers and their insureds. This article also provides recommended practices for an insured to follow when presenting a claim to a builder's risk insurer to avoid or minimize the impact of coverage disputes.