SDV Insights

COVID-19 business interruption coverage litigation may have stolen the show in 2020, but those cases should not eclipse other important insurance coverage cases decided throughout this past year.

Jeremiah Welch and Cheryl Kozdrey's recent article, "Protecting Yourself from Downstream Risks," was recently featured in the May/June 2020 edition of FMJ Magazine, the official magazine for International Facility Management Association (IFMA). This article explores effective risk management processes, including contractual risk transfer and insurance protections from downstream parties, and simple tools Facilities Managers can utilize to mitigate risk. To read the full article, click here.

Lennar Hingham Holdings, LLC ("Lennar") built a twenty-eight-building, 150-unit condominium project containing twenty-four discrete phases over a seven-year span. The condominium association subsequently brought an action against Lennar and others alleging design and construction defects to four main components of the common elements: "decks and columns," roofing/flashing," "exterior walls/flashing/building envelope," and "irrigation system."

Saxe Doernberger & Vita's ("SDV") Natural Disaster Recovery Group presents the Hurricane Season Policyholder's Handbook.

Although the Construction SuperConference has been canceled this year, Michael V. Pepe was recently featured in their construction monthly reader. Check out "Ten Clauses You Need in Your Insurance Exhibit," as he addresses insurance terms that are vital to construction contracts and subcontracts.

From structural collapses to fires, the construction industry has experienced a number of high-profile catastrophes over the past decade. These disasters test the mettle of even the most experienced risk professionals and the strongest insurance programs. Issues can arise in all facets of the company's contracts and insurance policies, and dealing with the aftermath is an extensive and demanding process that can involve many players.

Contradicting the Missouri Supreme Court and the majority of courts nationally, the 8th Circuit, applying Missouri law, recently ruled, in American Family Mutual Ins. Co. v. Mid-American Grain Distributors LLC, that defective or faulty workmanship is not an "occurrence" within the meaning of a Commercial General Liability ("CGL") policy.

Construction projects are susceptible to injuries and property damage - which is why the stakeholders involved rely heavily on commercial general liability ("CGL") insurance policies when such losses occur.

COVID-19 Business Interruption Challenges

Boston's recent decision to temporarily shut down city construction projects has many in the industry asking what impact, if any, a COVID-19 related shutdown would have on project insurance.