Avoiding Gaps in Wrap Insurance Coverage for Construction Projects
Conflicts and Reservations; Subrogation; Insufficient Limits; Reservations of Rights; Deductibles and Retentions; Insolvency
Recording of a 90-minute CLE video webinar with Q&A
This CLE course will guide construction counsel, construction executives, and insurance brokers in addressing issues arising from the use of wrap-up insurance programs and the coverage issues that often arise--including potential coverage gaps and eroding or inadequate limits--from the perspective of both the insurer and the insured. The panel will discuss practical alternatives to transfer risk outside of the wrap-up. The panel will also address how to involve entities not enrolled in the wrap and their insurers with a focus on priority of coverage and state anti-indemnity statutes.
Outline
- Overview of commercial and residential wrap-up insurance programs
- Common issues with wrap-up insurance
- Program structuring and coverage issues
- Terms, conditions, limitations, and exclusions
- Interaction with indemnity provisions and other risk transfer provisions in construction contacts
- Practical considerations and strategies
Benefits
The panel will review these and other key issues:
- What coverages are typically included and which are generally excluded?
- What are the primary issues and pitfalls with wrap-up insurance programs?
- What are the most common coverage issues that arise?
- How does policy language impact coverage and what coverage gaps could result?
- How do wrap-ups relate to construction defect issues?
- How are additional insured and contractual indemnification issues resolved?
- What are practical alternatives to transfer risk outside of the wrap-up?
- What are the strategies for involving non-enrolled other entities and their conventional, non-wrap insurers?
Faculty
James P. (Jamie) Bobotek
Partner
Pillsbury Winthrop Shaw Pittman
Mr. Bobotek guides clients through all phases of development and construction of commercial properties, including... | Read More
Mr. Bobotek guides clients through all phases of development and construction of commercial properties, including preparation, review and negotiation of development, design, construction, design-build, and related agreements. He also counsels clients in analyzing insurance coverage claims, formulating risk management strategies, and developing contractual insurance requirements. Mr. Bobotek has secured many favorable outcomes for commercial policyholders on CGL, builder’s risk, commercial property, business interruption, E&O, cyber, professional liability, D&O, pollution, fidelity and other claims.
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John R. Musitano, Jr.
Partner
Musitano Law
Mr. Musitano is founder and principal of Musitano Law PC in Southern California, specializing in insurance,... | Read More
Mr. Musitano is founder and principal of Musitano Law PC in Southern California, specializing in insurance, construction and risk management representation for homebuilders, property owners, developers and contractors. As insurance coverage counsel with over twenty-five years of experience, Mr. Musitano represents policyholders in all aspects of liability and property insurance claims and coverage disputes against insurers. His transactional risk management practice includes counseling clients as to risk transfer tools including indemnification and insurance provisions; the negotiation and implementation of insurance programs, including owner-controlled insurance programs (OCIPs); and risk management strategies for construction contracts, leases and other agreements pertaining to commercial and residential real estate projects and properties. Mr. Musitano is a frequent author and lecturer on insurance and construction law topics.
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