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

This CLE webinar will provide counsel for construction contractors and developers with an analysis of evolving coverage issues in builder's 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.

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, 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 builder's 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 builder's 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 builder's risk and CGL insurance policies and how these policies are used to mitigate developer and contractor risks.