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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Real Property - Transactions

Date & Time
  • event Date

    Tuesday, April 30, 2024

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

$297.00
CLE
ALL

This CLE course 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.

Faculty

David M. Adelstein
Partner
Kirwin Norris

Mr. Adelstein represents general contractors, subcontractors, design professionals, developers, associations, suppliers, sureties, and owners in a myriad of construction matters including, without limitation, construction/design defect claims, schedule-based claims (including inefficiency, lost productivity, and acceleration claims), bid protests, payment disputes, lien and bond claims, liability and property insurance issues, and a host of other issues that affect the construction industry. He prepares and negotiates construction contracts for clients utilizing AIA, EJCDC, and AGC industry form documents, as well as contracts that are not based on an industry form document.

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Christopher Yetka
Shareholder
Larkin Hoffman Daly & Lindgren Ltd

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).

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Description

One of the more complex issues in construction defect disputes involves property damage claims with multiple parties and implicating multiple layers of insurance. These claims often involve the contractor and several subcontractors.

Resolving coverage disputes hinges on understanding the relationship between primary and excess insurers and the point at which coverage from the excess policy is triggered. The outcome of horizontal vs. vertical exhaustion both among primary insurers and between primary and excess carriers is critical.

Exhaustion rules are also critical in determining which policy pays first among different parties--the contractor's primary policy or the policies of the subcontractors. More complex and contentious challenges arise when additional insured coverage is present.

Listen as our authoritative panel of insurance practitioners guides you through principles of vertical and horizontal insurance coverage exhaustion, how it impacts allocation between the contractor's primary and excess coverage, and priority of payment between contractor and subcontractor policies and among additional insureds.

Outline

  1. Horizontal and vertical exhaustion of coverage for construction defect claims
  2. Priority of coverage between contractors' primary carrier and excess insurer
  3. Priority of coverage between contractor and subcontractor policies
  4. Impact of exhaustion rules on additional insured coverage
  5. Dichotomy of views among states and recent case law

Benefits

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 the policies of subcontractors?
  • When additional insured coverage involves both primary and excess policies, what are the best strategies for resolving vertical vs. horizontal exhaustion?