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
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 Process
1. Recognition of Risk
2. Risk Assessment
3. Developing Strategies to Manage Risk
4. Mitigation of Risk
Risk Management
1. Risk Control – limiting risk exposures.
2. 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
• Professional Liability Insurance – Design and construction professionals.
– Project-Specific Professional Liability
– Owner’s Protective Professional Indemnity
Construction-related Insurance
• Controlled Insurance Plan or “Wrap-up” Insurance –
Comprehensive insurance program for all project participants.
Certificate of Insurance vs. Additional Insured
Certificate 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.