Construction Defect Claims: Impact of Horizontal vs. Vertical Exhaustion Rules on Multiple Layers of Coverage
Navigating Allocation Among Contractor's Policies, Contractor and Subcontractor Policies, and Additional Insured Carriers
Recording of a 90-minute CLE webinar with Q&A
This CLE webinar will discuss vertical vs. horizontal insurance coverage exhaustion in construction defect disputes. The program will analyze the impact of exhaustion on allocation between the contractor’s primary and excess coverage, the priority of payment between the contractor and its subcontractors, and the impact on additional insured coverage. The program will discuss best practices for resolving allocation disputes in construction claims involving multiple parties and layers of coverage.
- Horizontal and vertical exhaustion of coverage for construction defect claims
- Priority of coverage between contractors’ primary carrier and excess insurer
- Priority of coverage between contractor and subcontractor policies
- Impact of exhaustion rules on additional insured coverage
- Dichotomy of views among states and recent case law
The panel will review these and other key issues:
- How can counsel resolve issues that arise between the excess carrier and primary carrier when the primary carrier settles for less than the policy limits?
- How do the exhaustion of coverage rules determine priority of coverage between the contractor’s policies and policies of subcontractors?
- When additional insured coverage involves both primary and excess policies, what are the best strategies for resolving vertical vs. horizontal exhaustion?
Buchanan Dimasi Dancy & Grabouski
Ms. DiMasi is a commercial trial lawyer, with her primary focus on insurance coverage and bad faith litigation. She... | Read More
Ms. DiMasi is a commercial trial lawyer, with her primary focus on insurance coverage and bad faith litigation. She handles lawsuits involving a vast array of insurance issues, and provides advice regarding coverage and extra-contractual claims. She has presented and authored articles on insurance topics.Close
David G. Jordan
Saxe Doernberger & Vita
Mr. Jordan focuses his practice on complex insurance coverage litigation. He has had extensive involvement in the areas... | Read More
Mr. Jordan focuses his practice on complex insurance coverage litigation. He has had extensive involvement in the areas of construction defect claims, third-party liability claims, first-party property disputes and environmental coverage issues. Mr. Jordan also has experience in the areas of consumer and commercial collections, real estate, personal injury and health care law.Close
John B. Wilson
Senior Vice President
Marsh Risk & Insurance Services
Mr. Wilson is the firm’s Pacific North Construction Practice Leader. In this role, he is responsible for... | Read More
Mr. Wilson is the firm’s Pacific North Construction Practice Leader. In this role, he is responsible for developing, managing and delivering construction risk management services to contractors, architects, engineers, project owners and developers throughout the Pacific North Partnership and Western Zone. Mr. Wilson works in coordination with Marsh service teams and the Global Construction Practice to define, design and deliver a broad array of services to a variety of clients.Close