Construction Defect Bad Faith Insurance Claims: Navigating Duty to Defend and Indemnify Denial and Bad Faith Set-Ups
Assessing Faulty Workmanship, Business Risk Exclusions, AI Issues, Failure to Settle Within Limits and Contribution/Indemnity
Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
- work Practice Area
Real Property - Transactions
- event Date
Thursday, December 15, 2016
- schedule Time
1:00 PM E.T.
- timer Program Length
90 minutes
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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Allegations of bad faith claims handling often accompany insurance coverage disputes involving construction defect claims. This CLE webinar will walk attendees through current trends in bad faith claims arising out of such disputes, including defense/settlement and other claims handling issues. The program will discuss extra-contractual theories of liability that have been accepted and rejected by courts and will provide perspectives of both policyholders and insurers.
Uncertainty regarding policyholders’ and insurers’ respective rights and obligations creates the potential for construction defect-related bad faith claims against insurers. For example, an insurer’s failure to settle a claim within policy limits, thereby exposing the policyholder to personal liability, is fertile ground for a bad faith claim.
From the insurer’s perspective, “fairly debatable” issues regarding coverage for construction defect claims provide the argument that a bona fide coverage dispute existed, and that the insurer had a good faith basis to contest coverage.
Listen as our authoritative panel of insurance coverage counsel discusses trends in bad faith claims in the context of construction defect coverage disputes and claims handling.
- Trends in bad faith litigation in the realm of construction defect claims
- Denial of defense/indemnity risks
- Duty to defend denial
- Faulty workmanship as an “occurrence”
- Business risk exclusions
- Additional insured issues
- Duty to indemnify denial
- Failure to settle within limits
- Contribution/indemnity from other insurers
- Duty to defend denial
- Claims handling risks
- Bad faith “set-ups” in claims handling and dispute resolution
The panel will review these and other key issues:
- Trends in bad faith litigation in the realm of construction defect claims
- Most common grounds for bad faith claims emanating from defect coverage disputes
- Areas of bad faith liability risks for insurers in handling construction defect claims
