Knowledge Corner

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As a broker, you may have a client who would benefit from a Wrap-Up project. Unfortunately, your brokerage firm doesn’t place or administrator Wrap-Up policies. This can be a problem for you, as your client is going to need a broker that does.

Instead of losing your client to a competitor, consider partnering with a broker that not only places Wrap-Up coverages but also manages the Wrap-Up Administration. These administrative duties could include handling the subcontractor enrollments, payroll, and COI tracking.

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Over the last few weeks, our posts have discussed different types of fraud schemes that might occur in relation to goal requirements for certified Minority, Women, and Disadvantaged Businesses (MWBE or MWDBE) on projects with diversity goals. We also cited cases associated with those schemes that resulted in fines, imprisonment, and/or monitorships. In each case, an investigation produced and analyzed the evidence that resulted in successful indictments and the resulting penalties.  

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There is a windfall of new construction projects coming due to an infrastructure bill that President Biden signed into law in 2021. The bill indicates that $1 trillion will be spent in the next 5 years. In order to capitalize on this influx of new activity and grow their businesses, contractors should obtain assistance from their trusted advisors such as their insurance broker.

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As a business owner bidding on projects with diversity requirements, there is more to concern yourself with than simply submitting a competitive bid. You need to be aware of the various Minority, Women, and Disadvantaged Businesses (MWDBE) goal requirement schemes, so you do not unwittingly get caught in something deceptive and illegal. We have been writing about these schemes recently, including pass- throughs and fronts. This post will examine what is known as a Trucking Scheme.

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Contracts are often complicated and if you are not an expert in reading them, sometimes important details can be overlooked. There are significant risks inherent in every construction project. These risks can be driven by site conditions, the scope of work, an owner, or the contractors themselves. Regardless of the origin of the risk(s), they all have one thing in common - each contract executed will contain a clause transferring those risks from one party to another. This is done to eliminate a party’s exposure to risk.

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Fraudulent schemes have become increasingly commonplace in relation to goal requirements for certified MWBE’s (Minority, Women, and Disadvantaged Businesses) on projects with diversity goals. In previous blogs, we have discussed pass through and supply schemes. This week we will examine a scheme known as a “Front”.

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The Industrial and Commercial Abatement Program (ICAP) provides a reduction of property taxes for construction, alterations, or improvements on qualifying industrial or commercial properties. This reduction is only in specific areas of New York City and for varying periods of time.

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Have you heard of a supply scheme? If we revisit one of our past posts, “What Does MWBE Fraud Look Like?”, it introduces supply schemes along with other common fraudulent “schemes” that might occur in relation to goal requirements for certified MWBE’s (Minority, Women, and Disadvantaged Businesses) on projects with diversity goals. This post will examine supply schemes in more detail.

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With the Russian invasion of Ukraine, the insurance industry is bracing for the potential of Russian hacking activity that will target U.S. companies. Though there is policy language currently that excludes war, the interpretation can be broad and difficult to identify the "perpetrator of the cyber attack”. It’s often to a client’s advantage when there is vague wording on a policy.

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One of our recent posts, “What Does MWBE Fraud Look Like?” introduced the concept of common fraudulent “schemes” that can occur regarding goal requirements for certified XBE’s (Minority, Women, and Disadvantaged Businesses) on projects with diversity goals. Let’s examine these unlawful courses of action more closely, including highlighting the cost to companies for non-compliance. The first scheme we look at is pass through.