Organizational risks, property development

1
Module Two

• Organizational risks, property development
  construction risk management

2
Topics covered

• Package policy for the CDC office
• Construction risk management
• Management liability
• Employee dishonesty
• Risk management with certificates and additional
  insured endorsements

3
Questions posed

1. Insurance Needs analysis
2. Financial Remedies
3. Financial Guarantees
4. Directors Officers, EPLI
5. Valuation, deductibles, SIRs

4
Layout of the property
Exposing property
hydrant
sign
Office
Laundry water heaters
dumpster
25 units
25 units
parking
fence
No elevators
Playground
5
INSURANCE NEEDS ANALYSIS
1

• What insurance needs does the CDC have?
• What risk management opportunities are present?
• (answers)

6
FINANCIAL REMEDIES
2

• Property insurance
• Construction phase
• Completed work
• Liability
• Insured(s)
• Limits
• Exclusions
• Conditions
• Endorsements
• Contractual obligations hold harmless, insurance
  requirements, penalties/fines, specifications
• Bond requirements
• Court System

7
FINANCIAL GUARANTEES
3

• What type of bonds could apply for the CDC?
• What type of bonds could apply for the
  subcontractors?
• NON-INSURANCE versus "RISK TRANSFER" (via work
  agreement, complemented by insurance coverage)

8
MANAGEMENT LIABILITY, EMPLOYMENT
4

• An authorized board member secures bids, hires
  and supervises responsible contractors yet
  injuries and damage have both occurred at the job
  site and fingers are being pointed in every
  direction
• What insurance coverage is needed to reimburse
  the CDC (and board of the CDC) for defense
  expenses?
• What insurance coverage pays for the injury
  losses and damage during and after construction?
• What could the CDC do to prevent a similar loss
  in the future?
• What if that CDC board member is alleged to have
  unlawfully fired an employee?

9
VALUATION DEDUCTIBLES, SIR's
5

• What deductibles apply for each of the above
  coverages? (per loss? per building? time element?
  liability SIR?) (definition)

10
RESOURCES sample case

• Description
• Introduction to the scenario
• Case study Q A
• Six questions, linked to answers and discussion
  of concepts
• Analysis
• Three-way view of possible risk management
  solutions
• Insurance placement challenges
• Use this section to check for understanding
• Builders risk exposures
• Exposures for the directors and officers, and
  those working on their behalf as volunteers and
  employees