Risk, Responsibility and Dispute Avoidance
10 important questions on Risk, Responsibility and Dispute Avoidance
How is risk transferred from one contracting party to another?
Warranties and guarantees
Indemnity
How are the basics of risk management in contracts?
- Limit time to pursue action
- Limit parties involved
What did the UDC v. CH2M Hill case show?
- Contractual allocations of CH2M Hill specified that CH2M Hill was responsible for UDC's defense costs
- Higher grades + faster learning
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What are the basics of dispute avoidance?
What is Commercial General Liability (GCL)?
- Covers insured's liability to others due to accidents
- Does NOT cover: YOUR WORK i.e. Is not insurance against defective work although damage resulting from defective work IS COVERED
What is Property Insurance? What does it not cover?
- Does not cover "wear and tear" faulty material, workmanship and some specific exclusions (earthquakes)
What is Builder's Risk Insurance? What is another name for it? Why is it needed? What does it not cover?
Also called Course of Construction
Because contractor is at risk during construction
Insures damage to project property
Does not cover construction delay, defects, weather
What is Wrap-up Liability Insurance? When does it apply? What does it not cover?
Covers all parties' liability
During construction and for a specific period afterwards
Excludes "your work product", "workmanship"
What is Professional Liability Insurance (E&O)? What voids E&O insurance?
Provides defence and indemnity
Material nondisclosure - do not disclose something which could increase the insurance premium
Think accountants, lawyers and physicians
What is a claim for E&O insurance? What does E&O not cover?
- Advice that someone hold you responsible for loss
- Does not cover liability assumed by contract, estimates of profit, late work product
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding
