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

Wrap-Up Exclusion Issues and How to Avoid Them

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As a contractor, you should be aware if your corporate insurance policy has a Wrap-Up Exclusion. This exclusion can potentially create issues for you if your company does any work on Wrap-Up projects.

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Topics: Contracts, Wrap-Ups

What is Contractual Risk Transfer?

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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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Topics: Contracts, Contractual Risk Transfer

The Role of Insurance vs. Indemnification in Contracts

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In a contract, you are contractually bound by the indemnification article to pay for liabilities in whatever form you prefer. Payment of potential liabilities could bankrupt a company when the liability’s value exceeds the assets of the firm. As a result, contractors obtain insurance to cover these situations. The Owner typically recognizes this and includes another contract article (“Insurance”) to ensure the contractor has adequate means to pay for its liabilities, thus protecting the Owner.

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Topics: Contracts

Before You Sign That Renewal, Did You Review Your Current Insurance Program?

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As a Contractor, you wear a lot of hats – salesperson, customer service, quality control, etc. You understand you cannot be satisfied with the status quo if your business is going to thrive. You must be constantly looking for new jobs, sourcing quality materials, and providing excellent work for clients every day. One hat you need help with is your insurance program. If your Broker is a true business partner, he/she gladly wears that hat.

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Topics: Contracts, Construction Insurance

Construction Opportunities for Women Are On The Rise!

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The National Association of Women in Construction (NAWIC) and Safe Site Check-In shared the results of a workforce survey. This survey consisted of over 700 women in construction and was conducted in early February 2021, over a variety of construction jobs and titles.

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Topics: Surety Bonding, Contracts

How Contractors Can Work With Their Surety to Avoid Financial Ruin

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There can be a myriad of problems when a Contractor cannot fulfill its contractual obligation in connection with a construction project. This puts the Owner in a position to suffer a financial loss. In addition, the Contractor’s subcontractors and material suppliers may not receive payment from the Contractor for labor performed or materials supplied.

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Topics: Surety Bonding, Contracts

How Liquidated Damages & Consequential Damages Interact in a Contract

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Construction contracts can be overwhelming when you’re not looking at them every day. That’s why it’s important to understand your contract and the types of classification damages that could be written in it. Even though disputes are inevitable, understanding your contract will ultimately give you a leg up during the claims process. Let’s explore how liquidated damages and consequential damages interact in a contract.

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Topics: Contracts