Knowledge Corner

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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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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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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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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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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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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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As a construction firm, you have probably faced your share of claims. Unfortunately, it’s part of the job. Have you found yourself on hold with a claims adjustor when you should be at a project site? Wouldn’t it be helpful to have guidance through the entire claims process, so you can get back to business? Absolutely! Your Broker should be performing a thorough analysis on both your firm’s internal claims process, as well as the insurance carrier's claims procedures.

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As Wrap-Up Programs continue to become more popular, chances are, you have already found yourself enrolled in one. Make sure you have spoken to your Broker and removed the General Liability Wrap-Up Exclusion via endorsement on a blanket or project-specific basis.

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Accidents happen. Sometimes no matter how safe your company is, a claim can occur. It’s important that as an Owner/General Contractor your team knows what they need to do prior to any accident. Make sure you have clearly identified who will be responsible for completing the incident report if an accident were to occur (i.e. a Supervisor, etc.).