Claims Update: NotPetya Cyber Attack Settled


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Merck and its insurance companies have settled their lawsuit involving a 2017 cyber attack. The litigation involved a dispute about whether a war exclusion applied to a NotPetya cyber attack.  

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Topics: Claims, Cyber, Construction Trends

Builder’s Risk Update: S. Capitol Bridgebuilder V. Lexington Ins. Co.

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In recent years, large Builder’s Risk policies have included coverage terms from the London Engineering Group (LEG) that expand coverage by redefining how the policy will pay for claims involving construction defects. The broadest of these endorsements is called LEG-3 which excludes coverage only for the cost of the insured to improve the original material workmanship design, plan, or specification.

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Topics: Claims, Construction Trends

Vicarious Liability & Additional Insured Endorsements Ruling


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Last year, an Eleventh Circuit ruling in Cincinnati Specialty Underwriters, Ins. Co v KNS Group (11th Cir. Oct. 2022) addressed issues related to Additional Insureds (AI) and vicarious liability. In that case, the owner hired GM&P, the general contractor, to construct a new casino. In turn, the GM&P hired KNS and entered into a subcontract to perform exterior glazing and glass façade work on the project.

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Topics: Claims, Contracts, Additional Insured, Construction Trends

How A Late Claims Notice Can Affect Owners


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A federal appeals court ruled that Zurich Insurance was correct in denying coverage to Harvard University because of “lack of timely notice.”

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Topics: Claims, Contracts, Construction Trends, Construction Insurance

Florida Tort Reform Bill Becomes Law

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On March 24, 2023, Florida’s governor signed a new tort reform bill (H.R. 837) into law (the “Act”). The Act changes areas of Florida law that have previously been viewed as favoring tort plaintiffs and insurance policyholders. The changes primarily relate to the timing of negligence actions and the mechanics of proving and recovering damages in personal injury and insurance lawsuits. In anticipation of the Act’s passage, plaintiffs have rushed to file lawsuits before the new law takes effect.

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Topics: Claims

Wage & Hour Coverage: The Hidden Costs of Overtime Pay

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One way to identify risks for your company is to look at the insurance industry and what areas they have identified as threats. These are referred to as Emerging Risks and these days, there are plenty of them!

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Topics: Claims, Construction Risk Management

What is a Holdback?


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Property insurance policies can be written on a Replacement Cost Valuation (RCV) basis or on an Actual Cost Value (ACV) basis. Replacement Cost Valuation is defined as the cost to replace the damaged property with materials of like kind and quality, without any deduction for depreciation. Conversely, Actual Cash Value entails deducting depreciation, which is the decrease in value of property over a period because of age, wear and tear, or obsolescence, from the replacement cost of the insured property.

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Topics: Claims

Combat Auto Liability Claims


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Going into the pandemic Commercial Auto insurance was a very “distressed” line of coverage. The industry was operating at 119% loss ratio through the end of calendar year 2019. Since the pandemic, things have continued to worsen. Insurance carriers are continuing to increase rates, underwriting guidelines have become very stringent, and many carriers are pushing additional responsibilities, and costs, onto policyholders in an attempt to reduce claims exposures and related expenses.

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Topics: Claims, Auto Coverage, Construction Insurance

How to Analyze a Jobsite Accident


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Accidents are inevitable, but lessons learned are valuable tools to help prevent similar accidents from happening in the future. Critical analysis post-accident and implementation of proper safety measures can yield positive results. Reduced accidents can yield a lower workers’ compensation modification, reduced insurance costs, and the ability to competitively bid for more jobs.

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Topics: EMR, Claims, Safety