Over the past 25 years or so, the property/casualty insurance industry has confronted an onslaught of construction defect claims. Since the construction sector is a critical component of our Gross Domestic Product, it is not surprising that the impact of construction defect claims on the economy is significant. In addition, the ubiquity of these claims negatively impacts the availability and affordability of insurance, particularly for new residential construction. Managing such claims is challenging given the number of parties involved and the variety of construction contract language dealing with, among other things, indemnity obligations and insurance requirements. Risk-transfer language can be complex and has been the subject of much litigation. This handbook provides a practical and user-friendly framework for those professionals who manage construction defects. It will assist the professional's continuing learning, critical to the professional's success, and it will provide a handy reference.
