Annual Meetings-Session III: Faulty Workmanship and Ensuing Losses

Pdf Summary

The document discusses the issue of faulty workmanship leading to losses in construction projects, focusing on the importance of workmanship evaluation and insurance coverage. It highlights examples such as the HSBC headquarters delay due to a burst pipe and the Birds Nest Stadium welding challenges in Beijing. The various clauses like DE and LEG in insurance policies are explained, emphasizing that mere existence of a defect is not enough, there must be actual damage for the policy to respond. The text covers the evaluation aspects like site investigation, quality assurance, and risk assessment. It also touches on deductibles, machinery risks, and road construction examples. The conclusion stresses the uniqueness of construction risks, the significance of risk selection, and the importance of addressing coverage issues. Overall, the document underscores the complexity of insuring construction projects and the need for clear and precise insurance policies in case of faulty workmanship and ensuing losses.

Asset Caption

Presented by:
Paul A. Barnett, Vice President of Chubb Insurance Company of Europe SE.

Keywords

faulty workmanship

construction projects

workmanship evaluation

insurance coverage

HSBC headquarters

Birds Nest Stadium

insurance policies

defect

site investigation

risk assessment