Insurance reps, contractor risk managers and attorneys highlighted looming new risks at the Insurance Risk Management Institute's construction conference, held in Orlando, Fla., from Nov. 12 to Nov. 15, that could spell new bottom-line impacts and a need for more vigilance.
William B. Noonan, risk-management vice president for contractor StructureTone, noted the importance of having builders' risk policies "during construction" as well as blanket wrap-up coverages offered by owners or contractors. But Vincent Zegers, a construction specialist at Marsh USA, said there is still confusion as to whether subcontractors and suppliers should be "named" or just "additional" parties to the builder's risk coverage and how that status difference affects damage liability. Noonan emphasized that such policies also are being purchased too late in a project's progress, while Zegers noted continuing uncertainty among insurers and states over when and why policies can be cancelled.