Quakes and Aftershocks: The Impact of US Litigation and Claims Practices on the Global Insurance Community

Tuesday, Jan. 27 – 10:00 AM – 11:00 AM; repeat session 4:30 PM – 5:30 PM (EST)

Jeremiah M. Welch, Saxe Doernberger & Vita, P.C.
Amjad Khadhair, PCL Constructors, Inc.
Joanna Grant, Fenchurch Law
Naresh Dade, Howden Insurance Brokers, Ltd.

The 2023-2024 US LEG 3 decisions sent a shock through the builder’s risk marketplace. Many insurers are still struggling with how to define their position going forward. This session brings together an international panel comprised of coverage lawyers from the U.S. and U.K., a global insurance claim leader from Singapore and a Canadian general contractor. The panel will discuss how the US legal and claims landscape made these decisions predictable and inevitable. We’ll look at how the decisions have impacted the global marketplace and how that effect rebounds back in the US. Most importantly, the panel will examine what lessons can be learned, both abroad and domestically, to inform better underwriting and better claims resolution.

Unlocking Project Certainty: The Business Case for Latent Defect (IDI) Insurance in U.S. Construction

Tuesday, Jan. 27 – 3:05 PM – 4:05 PM (EST)

Anna M. Perry, Saxe Doernberger & Vita, P.C.
Jack Richards, Price Forbes
Matthew Daly, HUB International (Moderator)
Paul Weckerly, Professional Warranty Service Corporation
Peter Wallace, Castel Latent Defects Insurance

Latent Defect (Inherent Defect) Insurance (IDI) is gaining traction among U.S. developers, underwriters and owners seeking project completion certainty and post-completion “no-fault” protection. This session unpacks the rationale, mechanics and claims experience of IDI programs, contrasting them with traditional builders risk and professional liability products. Drawing on recent high-end residential and commercial builds – including case studies – insurance brokers, attorneys and carriers will analyze evolving legal and contractual risks, owner/developer motivations, underwriter appetite and practical concerns in implementation. Attendees will leave with an actionable understanding of how, why, and when IDI fills gaps in the U.S. coverage spectrum.

Insurance Issues in Constructing Data Centers: A GC's Perspective

Tuesday, Jan. 27 – 3:05 PM – 4:05 PM (EST)

Tracy Alan Saxe, Saxe Doernberger & Vita, P.C. (Moderator)
Alicia Pavelko, Zurich North America
Amy Iannone, DPR Construction
Regina Adler, Aon
Ted Wickenhauser, McCarthy Holdings, Inc.

Data centers are mission-critical, high-stakes projects where schedule certainty and risk management are paramount. For those with an interest in the project, they present unique challenges: a significant aggregation of values at risk, including the work, equipment and servers; capacity constraints within the insurance industry, workforce and specialized craft shortages; phase turnover; and the consequences for delay.

This session will walk through the key areas to navigate, including builder’s risk, property insurance, SDI, CIPs (both ongoing operations / completed operations), capacity constraints, and subrogation. We will highlight products being developed by brokers and carriers to support the growth in this business sector, as well as some of the potential coverage challenges to be aware of. The program will provide practical strategies for aligning contracts with insurance.

A Survey of Recent Construction Coverage Decisions

Wednesday, Jan. 28, 8:00 AM – 9:00 AM (EST)

Jeffrey J. Vita, Saxe Doernberger & Vita, P.C.
Donald Naber, Gilbane Building Company

Insurance plays a critical role in construction-related risk transfer and this program will identify and analyze recent insurance coverage decisions which impact construction risk. Understanding how courts interpret and evaluate various lines of coverage available to contractors will help general contractors and construction managers keep pace with the latest insurance trends. Relatedly, this knowledge will arm contractors with the information necessary to better protect their assets through contract drafting as well as insurance placement. Finally, contractors will be educated about how choice of law impacts insurance outcomes.

The panel will discuss recent coverage decisions and how they impact general contractors on their day-to-day projects. The panel will provide guidance and strategies to avoid potential insurance coverage gaps in order to better predict insurance coverage outcomes.

From Defects to Dollars: Measuring Damages in Construction Defect Cases

Wednesday, Jan, 28 – 10:45 AM – 11:45 AM (EST)

Bethany L. Barrese, Saxe Doernberger & Vita, P.C.
Gregory D. Podolak, Saxe Doernberger & Vita, P.C.
David Ehrlich, Coastal Construction
Brett Henson, Carlton Fields

Construction defect litigation often hinges not just on liability, but on the complex and often contentious question of damages. This panel will explore the legal, practical, and insurance-related challenges in quantifying damages in construction defect cases. Topics will include a discussion of the proper timing to measure construction defect damages, varying law across jurisdictions regarding the calculation and awarding of pre-judgment interest, and whether and when an award of pre-judgment interest constitutes an insurable risk.