SAN DIEGO — Modernizing the insurance closing process for construction projects through application automation could lead to legal issues later on, in large part due to the evolution and expansion of exclusions and conditions in commercial general liability insurance. , said presenters from the International Risk Management Association on Monday. Inc. Annual Construction Risk Conference.
This is how the changing nature, vocabulary and nuances of contract language require greater scrutiny and attention to detail, said Rachel Dobbs, a customer executive with Orlando, Fla.-based Hylant Group. This is an example of whether there is such a thing, and it states that there is a possibility that the company may retire depending on the renewal period. Especially vulnerable.
“If you’re just clicking on something online and not having a discussion, it’s easy to miss those nuanced conversations,” she says, adding that one of the most common exclusions in the construction industry: We mentioned those that do not cover specific work classifications. roofing etc. “This is not how I prefer to do renewals. I like to actually sit down with my customers and go over questions together, especially regarding supplemental (insurance) applications,” she said.
Regarding the classification exclusion, Bethany Barrese, a New York-based partner at Saxe Doernberger & Vita PC, said her clients prefer to avoid such language. It’s just one day and then it never changes. ”
“You don’t have to call your insurance broker every time you get a change order, and you don’t have to add something else to your policy,” Dobbs added.
Contracts that exclude coverage for damages from perfluoroalkyl and polyfluoroalkyl substances (PFAS) are also becoming more common, posing challenges for industries that work with materials made from what are sometimes referred to as “forever chemicals.” Yes, Dobbs said.
“Concern about PFA is growing and is being addressed in almost every policy,” she said.
Valleys said there is also growing support for policy language regarding subcontractors in the legal community, which supports companies navigating construction insurance policies.
She said these situations are “more and more common to me and cause a lot of problems for a lot of my clients,” mostly because different insurance companies use different language and phrasing. “You can see that these endorsements go by different names,” she added. She gave a list of different terms and conditions that basically affect contracts in the same way, from “contractor’s special terms” to “subcontractor’s warranties.”
“Whenever I see this kind of support in policy, my number one recommendation is to negotiate and withdraw it,” she said. “If you can’t do that, you’ll have to go to great lengths to ensure that any subcontracts you have have the appropriate terms and are signed. You need to make sure that it is met.”
