SDV Insights

Some hot topics dominating the construction industry today include the impacts of COVID-19, government testing and vaccine mandates, cyber security, and the evolving role of general counsel.

Technology is the driving force behind industry and growth for all businesses, but its advantages come with risks. Downed computer systems and lost data can have significant financial impacts. Security breaches, viruses, and information theft by computer hackers also pose a serious problem. Thousands of cyberattacks occur in the US every day, and no business is immune from this threat.

In June 24, 2021, the Champlain Towers South in Surfside, Florida collapsed, killing nearly 100 individuals (the "Collapse"). As experts uncover more information regarding the cause of the Collapse, those individuals who have filed lawsuits as well as the potentially culpable defendants are looking to insurers for coverage of their bodily injury and property damage claims.

On February 24, 2022, Russia invaded Ukraine, escalating the conflict between the two countries to unprecedented levels. Much of the West quickly responded to Russia's aggression by levying some of the most severe sanctions in history on Russia's government, companies, and wealthy citizens, including Vladimir Putin.

In Allen v. Unum, the disability insurer's argument for preemption of Dr. Allen's state law breach of contract claims revolved around an unfounded allegation that just because he and other physicians in his practice purchased individual policies from Unum affiliate Provident Life and Casualty Insurance Company that were charged on the same bill but paid separately and personally, an ERISA plan existed.

On December 31, 2021, New York enacted the Comprehensive Insurance Disclosure Act ("CIDA"), requiring defendants to provide plaintiffs with "complete" information for any insurance policy through which a judgment could be satisfied, within sixty (60) days after serving an answer.

Courts across the nation have struggled to determine whether insurance policies that provide coverage for "direct physical loss or damage" insure losses stemming from COVID-19.

The recent Nevada Supreme Court ruling in Zurich American Insurance Company v. Ironshore Specialty Insurance Company benefits insureds seeking to establish an insurer's duty to defend. As a matter of first impression, the court held that insureds can use extrinsic evidence to establish an insurer's duty to defend, but insurers cannot use extrinsic evidence to deny that duty.

Nearly half of America's construction projects are now design-build in a continuing shift. As a result, contractors are taking on more professional liability ("PL") risk than ever before, and the risk management landscape is changing. There are unique challenges to managing PL risks and claims.

The experience of applying for disability insurance coverage carries with it novel information. Depending on your profession, policy features and coverage costs could raise questions.