Construction Builder's Risk and CGL Insurance: Scope of Coverage, Covered Losses, Exclusions, AI Endorsements

Description

Construction projects are always at risk for economic losses from unanticipated property damage, additional soft costs, and revenue loss that result in unbudgeted costs that can threaten project completion. Builder's risk coverage is a crucial risk mitigation measure for building contractors and developers.

The starting point for the scope of builder's risk coverage is the requirements outlined in the contract documents. Coverage disputes often involve the insurance rights, tort liability, and contractual obligations of the owner, general contractor, subcontractors, and design professionals. Coverage issues that counsel to builders and developers must consider who is covered, what is included, and when/how coverage applies. Because builder's risk policies are not standardized, coverage varies dramatically between insurers. Coverage disputes often arise over the types of costs recoverable and the coverage exclusions and exceptions.

Counsel often must also navigate the interplay between builder’s risk policies, CGL policies, and wrap policies. Frequently disputed and litigated issues under CGL policies include the various policy exclusions such as those which apply to damage to the project.

Listen as our authoritative panel guides you through the characteristics of builder's risk and CGL insurance policies and how these policies are used to mitigate developer and contractor risks.