Annual Meetings-Lessons from Losses moderated by Ron Castellanos, Selective - Joshua Villalva, Selective, on High Valued Builders Risk

Lessons from Losses moderated by Ron Castellanos, Selective - Joshua Villalva, Selective, on High Valued Builders Risk

Pdf Summary

The document provides insights from a case study involving a high-valued dwelling project that faced challenges leading to a significant loss. The project involved multiple change orders, including adding square footage, using exotic materials, and changing framing types. These changes raised underwriting concerns, impacted job site cleanliness, and extended the project timeline. Despite efforts to mitigate risks, a loss occurred due to a fire in the newly added stairwell, leading to a claim payout of $5.8 million. The loss was attributed to factors such as the absence of a hot work program, compromised foundation, and supply chain shortages for specialized materials. Lessons learned from this experience include the importance of confirming Public Protection Class (PPC), implementing a hot work program, understanding morale hazards, adhering to detailed budgets and timelines, and emphasizing underwriter training. The case study highlights the complexities and risks associated with high-value construction projects, underscoring the need for comprehensive risk management strategies and adherence to safety protocols. The document is presented by Joshua Villalva and encompassed within the context of the Inland Marine Underwriters Association's focus on advancing the educational and technical interests of the commercial inland marine insurance industry.

Asset Caption

Presented by:
Joshua Villalva, Selective, on High Valued Builders Risk

Keywords

case study

high-valued dwelling project

change orders

underwriting concerns

job site cleanliness

project timeline

fire incident

claim payout

risk mitigation

construction project risks