Information Release

Contact: Hugh O. Strawn
hstrawn@plrb.org
630-724-2230

Date: September 15, 2016

Builder's Risk and Delay in Opening Coverage: Adjusting a Loss That Occurs During Construction

2016 PLRB Large Loss Conference

 

Building construction is a risky operation and occasionally there is a loss that occurs delaying completion of the structure. When it involves a major construction project there will very likely be an insurance claim and a large loss adjuster will sort out the details. "Builder's Risk and Delay in Opening Coverage: Adjusting a Loss That Occurs During Construction," is one of the workshops offered at the Property & Liability Resource Bureau's Large Loss Conference, October 4 to 6, in Chicago.

The workshop will discuss a claims scenario that involves a large loss claim for an insured event that set back the construction schedule and opening date of the new facility. It will be lead by: Marc Giovanni, Head-First-Party Property Claims, Liberty Mutual Insurance; Paul Ferland, Partner, Foran Glennon Palandech; Pat Gleeson, Deputy Manager, MunichRe UK General Branch; William Kramer, President, William Kramer & Associates; and Luke Longcroft, Director, Capital Consulting International.

"All delays are not equal," observed Scott Powell, Vice President , Educational and Technical Services, PLRB. "The large loss adjusters must determine when the delay period began and when it ended. They are also tasked, among other responsibilities, with examining key policy provisions and alternate policy forms to determine coverage."

Some key issues to be addressed in the workshop include:

  • What is "Delay in Opening" and "Delay in Start Up" coverage?
  • How does the coverage function in a "Builders Risk" policy?
  • What are the relevant issues in each stage of a claim?

"Determining the cause of the delay is a critical element of the claim investigation," said Powell. "One of the responsibilities of the large loss adjusters is to arrange for experts who can identify any non-loss-related work, as well as work performed without due diligence and dispatch, in order to determine their effect on the delay-in-opening computation."

The session is approved for adjuster continuing education credit in Florida, North Carolina, Oklahoma, and Texas. It has also been approved for educational credit for both CPCU and RPA designees.

The workshops offered at the Large Loss Conference are adjuster-led and encourage active participation. They provide a unique opportunity to learn from and with many of the insurance industry's leading experts.

Classes are offered in three tracks:

  • Commercial Lines, property claims
  • Personal Lines, property claims
  • Casualty Claims

The Large Loss Conference will be held at the Chicago Marriott Downtown Magnificent Mile. Senior claim professionals and service providers from across the nation will meet for professional education and development. They will evaluate a variety of large loss claim scenarios through workshops. They will share ideas and adjustment strategies with large loss professionals from across the country. They will also be able to network with large loss adjusters and service providers from across hundreds of disciplines and specialty areas.

Complete information regarding the workshops and registration is available here.

The Property & Liability Resource Bureau is a not-for-profit association of property and casualty insurance companies. It is located in Downers Grove, Illinois.