Construction Builders Risk and CGL Insurance: Scope of Coverage, Covered Losses, Exclusions, AI Endorsements
Mitigating Construction-Related Disputes; Key Challenges for Claims Under Builders Risk vs. CGL Coverage

Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Real Property - Transactions
- event Date
Tuesday, April 2, 2024
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
-
This 90-minute webinar is eligible in most states for 1.5 CLE credits.
This CLE course will provide counsel for construction contractors and developers with an analysis of evolving coverage issues in builders risk and CGL insurance for construction projects. The panel will discuss how these policies work to mitigate developer and contractor risks, the use of additional insured endorsements, problematic coverage issues, and potential pitfalls for the unwary.
Faculty

Mr. Wielinski practices in the areas of construction, insurance coverage and risk management. He provides advice on risk management issues and programs, integrating insurance, contract documents and project relationships to manage and transfer risk for his clients. Mr. Wielinski also counsels clients as to insurance coverage and contractual risk transfer disputes, having been involved in insurance coverage claims for defective workmanship for over 35 years. His practice involves commercial general liability, additional insured, builders risk, wrap ups and controlled insurance programs, subcontractor default coverage, design professional, contractors protective professional liability, miscellaneous errors and omissions, environmental, oil and gas, property, directors and officers and other third party and first party coverages. Mr. Wielinski regularly lectures to construction, insurance, and legal groups on insurance coverage and risk management issues, having authored numerous publications, many of which are relied upon in the insurance and construction industries. He represents national, state and local chapters of construction trade organizations, including the Associated General Contractors of America, in the filing of amicus curiae briefs in jurisdictions in which significant issues relating to insurance coverage for the construction industry are on appeal.

Mr. Pepe focuses his practice on complex insurance coverage issues on behalf of policyholders, and has advocated for his clients at trial, on appeal and in ADR settings. He routinely handles issues dealing with commercial liability, builders’ risk, additional insured claims, indemnity, and the duty to defend. Prior to joining the firm, Mr. Pepe represented general contractors, subcontractors, architects and homeowners in contract disputes, construction defect claims, and surety bond claims.

Mr. Yetka is a commercial trial attorney focusing his practice on insurance recovery disputes. He has successfully enforced the coverage rights of policyholders across the country in cases relating to nearly every type of insurance policy. He has represented and counseled construction companies, financial institutions, utilities, medical device companies, product manufacturers, transportation companies, agricultural businesses and technology companies. Mr. Yetka provides advice to general counsel in the areas of legal and regulatory compliance, records management and document retention, and in the evolving area of cyber security. He is a Fellow of the American College of Coverage Counsel, a Vice Chair (and former Chair) of the Insurance Coverage Litigation Committee of the ABA, and a Program Committee Member of the Minnesota Chapter of the Risk and Insurance Management Society Inc. (RIMS).
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. Builders risk coverage is a crucial risk mitigation measure for building contractors and developers, as is adequate liability coverage through CGL policies and wrap ups.
Counsel to builders and developers must consider who is covered, what property is covered, what limits and sublimits apply, and when/how coverage applies. Because builders risk policies are not standardized, coverage varies dramatically between insurers. Coverage disputes often arise over the types of costs recoverable, calculation of economic damages, and the coverage exclusions and exceptions.
For liability disputes, CGL coverage must be adequately placed to cover construction risks during the course of construction as well as after. Typical issues include who is covered, the scope of coverage, and exclusions and conditions that apply.
Counsel often must also navigate the interplay between builders risk policies, CGL policies, including wrap policies, and professional liability policies. These issues are influenced by the language of the policies and the parties' contractual obligations to each other. Attention to the details is necessary to ensure coverage is triggered when necessary.
Listen as our authoritative panel guides you through the characteristics of builders risk and CGL insurance policies and how these policies are used to mitigate developer and contractor risks.
Outline
- Builders risk policies
- Contractual requirements
- Scope of coverage
- Troublesome exclusions and conditions
- Common issues and practice pointers
- CGL policies
- Scope of coverage
- Exclusions and exceptions to exclusions
- Costs recoverable
- Wrap policies
- Additional insured endorsements
Benefits
The panel will review these and other key issues:
- What are the critical challenges for claims under builders risk vs. CGL policies?
- What does a typical builders risk policy cover?
- What are the standard exclusions and exceptions in builders risk policies?
- What occurrences do most CGL policies cover?
- What are the standard exclusions and exceptions in CGL policies?
- Can a general contractor or developer rely upon additional insured coverage to cover its risk exposure?
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