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How to Manage Risk and Stay out of Trouble on Capital Investment Projects Risk Management and Insurance. Charles W. Miller III, Esq. Norris, McLaughlin & Marcus. Risk Management. “It’s Not Rocket Science…It’s Much More Complicated.”. Risk Management Process. Recognition of Risk
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How to Manage Risk and Stay out of Trouble on Capital Investment ProjectsRisk Management and Insurance Charles W. Miller III, Esq. Norris, McLaughlin & Marcus
Risk Management “It’s Not Rocket Science…It’s Much More Complicated.”
Risk Management Process • Recognition of Risk • Risk Assessment • Developing Strategies to Manage Risk • Mitigation of Risk
Risk Management Risk Control – limiting risk exposures. Risk Financing – limiting payment due to risk exposures.
Construction-related Insurance • Builders Risk Insurance – Building coverage during the course of construction. • Commercial General Liability (CGL) Insurance – Third-party liability coverage. • Excess/Umbrella Liability Insurance – Broader/higher coverage for excess claims.
Construction-related Insurance • Workers Compensation Insurance – Employee injuries at work.
Construction-related Insurance • Pollution Insurance – • Excluded in CGL coverage.
Construction-related Insurance • Professional Liability Insurance – Design and construction professionals. • Project-Specific Professional Liability • Owner’s Protective Professional Indemnity
Construction-related Insurance • Subcontractor Default Insurance/Subguard
Construction-related Insurance • Controlled Insurance Plan or “Wrap-up” Insurance – Comprehensive insurance program for all project participants.
Certificate of Insurance vs. Additional InsuredCertificate of Insurance does not establish insurance coverage.
Statute of Repose vs. Statute of Limitation • Statute of Repose – begins at period following completion of services. • Statute of Limitations – begins at date of injury or discovery.
Night Watchman Worker’s Compensation
Joe Smith - Neighbor • Commercial General Liability • Umbrella
Electrical Switchgear • Builders Risk
Business Income/Rental Income Loss under Builders Risk Policy Delayed Completion
Contaminated Soil • Pollution