Conference Schedule and Agenda

Surety and Insurance Market Forecast: Rates, Underwriting and Coverage

• David Dolnick – Dolnick Risk Advisors (Moderator)
• Brian Cooper – Arthur J. Gallagher & Company
• William (Bill) Noonan – Alliant Construction Services Group
• Megan Remley – Lockton Companies
• Troy Wagener – BXS Insurance, Inc.

The longest “soft” market is ending, and a hard insurance market is here. While not all lines of coverage are experiencing the same level of market swing at the moment, contractors of all levels should prepare for tighter underwriting requirements, increased rates, and more stringent coverage terms and conditions. This panel will provide pragmatic risk management information and practical tips on how to prepare for the changes ahead, and how to help your firm and its business partners (both upstream and downstream) mitigate the impact and work for success in the coming cycle.  The panelists will explore:

• Market cycles and why this one will be different.
• How to position your firm for the changes in the insurance market.
• Pragmatic steps to mitigate the impact of likely underwriting changes.
• Pragmatic steps to mitigate the likely increases in pricing and rates.

Humanizing Big Data in Construction

• Rose Hoyle – AXA XL
• Donna Laquidara-Carr – Dodge Data & Analytics
• Doug Ware – Suffolk Construction

The rise in construction technology and the internet of things is generating a tremendous amount of valuable data, but how can contractors operationalize this information to reduce risk and increase bottom lines? In a legacy industry like construction, innovation is only achieved when we can effectively translate the charts and graphs to behaviors and actions in the field that drive humans and machines to construct quality buildings safely and more efficiently. This session will explore various types of data being collected and how to interpret them for your business; strategies for translating this information into actionable change in your organization; and how aggregating this data across your company and the industry (via benchmarking) is the key to staying on the cutting edge of innovation in construction.

Working with OCIPs: Practical and Technical Strategies for Building an Effective Program

• Greg Podolak – Saxe Doernberger & Vita, P.C.
• Don Naber – Gilbane Building Company
• Donnette Bellamy – HITT Contracting

Guideline for understanding and building your best wrap program. This session will give you the tools to better understand issues unique to wrap-ups and facilitate cooperation between the sponsor(s) and participants. The panel will address important coverage considerations, red flags to avoid, and considerations on how coverage would be provided if a claim is made.

Managing Subcontractor Risk with Surety Bonds and SDI

• J. Eric Getty – McGriff Seibels & Williams, Inc. (Moderator)
• Mark Edwards – McGriff, Seibels & Williams, Inc.
• Jason LaMonica – AXA XL
• Derek Fennell – AXA XL
• Jacob Fulmer – Travelers Bond & Specialty Insurance
• Kim Zanotta – Travelers Bond & Specialty Insurance

This session will contrast the use of surety bonds and subcontractor default insurance, highlighting the advantages and disadvantages of each. Providers of these products will offer perspectives including a look at often misunderstood issues in both underwriting considerations and claims handling. By gaining valuable insight from leading providers of surety bonds and subcontractor default insurance, attendees will leave the session better equipped to determine how and when to use these products to most effectively manage their subcontractor risk.

Staying 3 Steps Ahead of the Cyber Construction Risk Curve

• Greg Perruzzi – SphereNY

Join Greg Perruzzi, VP of Enterprise Risk Management for SphereNY, as he identifies and explains a systematic approach to thinking through the enterprise-wide and project-specific cyber “construction” risks to his firm – while taking the necessary steps with key internal stakeholders and external partners to create and execute on a unique insurance program solution.

Every organization faces a form of cyber risk, no matter their size or industry. Construction, in particular, may exposure even more vulnerabilities ranging from critical IT system shutdowns to the potential threat of injury and physical damage to 3^rd parties. More than ever, the active involvement of Risk Management Executives will be key to leading the assessment, design and execution of a successful plan. Alignment with insurance coverage, claims litigation management procedures and crisis management planning is paramount.

This session will tell the “story” of how this solution came to be while focusing the audience on 3 critical components which may provide a sound blue print for others:

1. Risk Portfolio X-Ray
2. Insurance Product Creation
3. Operational Integration

How To ‘Turn the Corner’ on Auto Claim Increases

• Jim Berriatua – Gallagher Global Construction Services

Auto insurance rates continue to increase.  Distracted driving is causing accidents at an alarming rate.  The traditional auto risk management methods have not dented the jump in claims.  Join Jim Berriatua, VP at Gallagher Global Construction Services, for “lessons learned” and testimonials from construction and related companies who have achieved immediate, positive results (i.e., crash avoidance) with a Zero-Accident auto/pickup truck safety program.  Come find out how the construction industry stands to benefit from technology-based collision detection systems.  Discuss how construction firms differ in buying, leasing or not providing vehicles for their employees.

Humanizing Big Data in Construction

• Rose Hoyle – AXA XL
• Donna Laquidara-Carr – Dodge Data & Analytics
• Doug Ware – Suffolk Construction

The rise in construction technology and the internet of things is generating a tremendous amount of valuable data, but how can contractors operationalize this information to reduce risk and increase bottom lines? In a legacy industry like construction, innovation is only achieved when we can effectively translate the charts and graphs to behaviors and actions in the field that drive humans and machines to construct quality buildings safely and more efficiently. This session will explore various types of data being collected and how to interpret them for your business; strategies for translating this information into actionable change in your organization; and how aggregating this data across your company and the industry (via benchmarking) is the key to staying on the cutting edge of innovation in construction.

The Evolution of Contractor’s Protective Coverage

• Jeffrey Vita – Saxe Doernberger & Vita, P.C.
• Keith Jurss – Willis Towers Watson
• Russ Johnson – Skanska USA Building

As construction projects continue to evolve with collaborative project delivery models, losses often blur the line between construction and design responsibility. Similarly, construction insurance products have evolved to help insure these various risks. The Contractors Protective Coverage (i.e., CPPI) can provide valuable coverage for any contractor facing design responsibility/liability. This program will explore all of the coverages available under the contractor’s protective policy and explain both the 3^rd party and 1^st party components of coverage using specific claim examples. The panel will identify: how CPPI dovetails with other coverages; coverage issues and potential gaps/traps; and how CPPI fits into the contractor’s risk transfer objectives in order to maximize insurance recovery.

Managing Subcontractor Risk with Surety Bonds and SDI

• J. Eric Getty – McGriff Seibels & Williams, Inc. (Moderator)
• Mark Edwards – McGriff, Seibels & Williams, Inc.
• Jason LaMonica – AXA XL
• Derek Fennell – AXA XL
• Jacob Fulmer – Travelers Bond & Specialty Insurance
• Kim Zanotta – Travelers Bond & Specialty Insurance

This session will contrast the use of surety bonds and subcontractor default insurance, highlighting the advantages and disadvantages of each. Providers of these products will offer perspectives including a look at often misunderstood issues in both underwriting considerations and claims handling. By gaining valuable insight from leading providers of surety bonds and subcontractor default insurance, attendees will leave the session better equipped to determine how and when to use these products to most effectively manage their subcontractor risk.

Staying 3 Steps Ahead of the Cyber Construction Risk Curve

• Greg Perruzzi – SphereNY

Join Greg Perruzzi, VP of Enterprise Risk Management for SphereNY, as he identifies and explains a systematic approach to thinking through the enterprise-wide and project-specific cyber “construction” risks to his firm – while taking the necessary steps with key internal stakeholders and external partners to create and execute on a unique insurance program solution.

Every organization faces a form of cyber risk, no matter their size or industry. Construction, in particular, may exposure even more vulnerabilities ranging from critical IT system shutdowns to the potential threat of injury and physical damage to 3^rd parties. More than ever, the active involvement of Risk Management Executives will be key to leading the assessment, design and execution of a successful plan. Alignment with insurance coverage, claims litigation management procedures and crisis management planning is paramount.

This session will tell the “story” of how this solution came to be while focusing the audience on 3 critical components which may provide a sound blue print for others:

1. Risk Portfolio X-Ray
2. Insurance Product Creation
3. Operational Integration

Rain Check: A Hard Look at Weather’s Impact on the Construction Process and the Granular Data Now Promising to Clarify the Risks

• Mike Bennett – Athenium Analytics
• Jacobus (Jaap) Vrolijk – Bechtel National, Inc. 

Where and how weather can disrupt or delay the construction of a project depends on many things, including the nature of the project and the set of weather conditions that the site could encounter.  During this session, one contractor will share its efforts to evaluate the weather risks for each of its projects.  A leading provider of weather data will then share what it has learned from discussions with construction contractors across the country.  The latter will also share the results of its recent efforts to help contractors address a particularly nettlesome set of projects: transportation, pipeline, powerline and other linear projects that can extend for many miles.  Along the way, the speakers will solicit your thoughts on the weather risks that contractors need to consider and the weather data that would help contractors mitigate those risks.  How can and should you evaluate the weather risks for your projects?  What data do you really need to negotiate the contract terms, to identify and procure the insurance and to devise the operating procedures that will effectively manage those risks?

Show Me the Money-Now! Tips & Case Studies on Resolving Complex Construction, Surety & Insurance Disputes Quickly & Effectively

• Scott Gurney – Gurney Dispute Resolution LLC (Moderator)
• Adrian Bastianelli, III – Peckar & Abramson, P.C.
• Leslie King O’Neal – Brasfield & Gorrie, L.L.C.
• Steve Nelson – Markel Surety, SureTec Insurance Company
• Lee Shidlofsky – Shidlofsky Law Firm PLLC

Protracted and costly disputes remain a major concern for the construction industry where time truly is money. Since most cases eventually settle before the trial or arbitration hearing, shouldn’t companies and their attorneys prioritize, plan and implement strategies for resolving disputes as early as possible, before the costs, disruption, and risks mount? This panel program will offer tips and innovative mediation and other ADR processes, as well as strategies for resolving disputes quickly and fairly among contractors, subcontractors, insurance carriers, and sureties. The panelists will explore:

• Key statistics demonstrating the critical importance and benefits of planned early dispute resolution.
• Processes for resolving disputes cheaper, faster and better through early active evaluation and engagement of key stakeholders.
• How to implement early dispute resolution as a business strategy.
• Tips and techniques for maximizing mediation success when negotiating with sureties and insurers.

Construction M&A: Trends and the Changing Role of Risk Managers

• Ryan Foley – FMI Capital Advisors, Inc.

With a particular focus on how risk management plays an increasing role in mergers and acquisitions (M&A) in the construction industry, this presentation will explore recent trends in these complex transactions. What verticals within construction are most active in today’s M&A environment? What is driving activity? What risks are acquirers evaluating? FMI’s exclusive focus on engineering and construction offers unique insights into the importance of risk management in M&A. This session will do a deep dive into how the role of the risk manager has transformed from a reactive station charged with diligence to a more proactive, mission critical strategic advisor on the deal. You will also learn what sectors are attracting private equity (and, incidentally, leverage) and new gain insight into what risks acquirers commonly evaluate in deals.

The ‘New Reality’ of Design Responsibility for Contractors and Subcontractors and Common Sense Recommendations

• Ronald Robey – Smith, Currie & Hancock LLP
• S. Elysha Luken – Smith, Currie & Hancock LLP

Whether by express agreement or unintentionally, contractors and subcontractors are assuming more design risk. Clear and specific design delegation on the front end is a risk that can be fairly analyzed and priced. However, this presentation focuses on when and how contractors take on design risk outside the historical norm and when the contract documents do not clearly assign this risk to the contractor. Assuming design risk not originally intended through value engineering, BIM, constructability review, design assist, the role of shop drawings in “delegated design in disguise,” performance specifications, and “review” of design reflects the current trend for owners to put more design risk on the construction side. The presenters will provide practical advice and specific wording to avoid taking on unexpected design risk. These practical tips can be used by the project office and the field staff and can provide materials for in-house training.

Performance Security and Infrastructure Development: Why is liquidity king and what to do about it?

• Adrian Pellen – Marsh JLT Specialty (Moderator)
• Courtney Walker – Berkshire Hathaway Specialty Insurance Company
• Kevin Li – DBRS
• Barry Normet – Marsh Canada Limited
• Caryn  Maxfield – The Walsh Group

The size and scale of construct projects continues to increase to unprecedented levels. Over the next decade, “mega projects” may change the construction landscape – with a projected 600 percent increase (more than $350B) in annual project spending. Infrastructure megaprojects will make up more than half of this type of work.  Alternative delivery methods have emerged to help manage the increasing complexity and size of megaprojects, and performance security will continue to play a crucial role in managing nonperformance and default risks.

During this session, you will learn about the current role of performance security in infrastructure development. The panel will discuss the varying types of performance security options available – whether surety bonds, retainage, letters of credits or other products – as well as the emergence new products such as liquid bonds, and how these products are viewed in the eyes of project stakeholders including contractors, developers, rating agencies and performance security consultants.  The expert panel will discuss:

• Regulatory hurdles involved with alternative performance security instruments such as liquid surety or EDR bonds.
• Considerations that rating agencies give to alternative instruments.
• Underwriting criteria for performance security innovation.
• What surety companies require from contractors to consider innovations in surety instruments.

Wrapping It All Up

• Greg Podolak – Saxe Doernberger & Vita, P.C.

Building on the earlier breakout session – Working with OCIPS: Practical and Technical Strategies for Building an Effective Program – this interactive discussion will continue to explore the unique legal nuances of consolidated insurance programs.  Come ready to share your experiences and ask questions about: coverage considerations; gaps between builder’s risk policies and wrap-ups; wrap-up exclusions; and the interplay with workers compensation benefits.  Greg Podolak, managing partner of SDV Southeast, will review the strategies outlined his legal research paper (available on the App).

Construction M&A: Trends and the Changing Role of Risk Managers

• Ryan Foley – FMI Capital Advisors, Inc.

With a particular focus on how risk management plays an increasing role in mergers & acquisitions in the construction industry, this presentation will explore recent trends in these complex transactions. What verticals within construction are most active in today’s M&A environment? What is driving activity? What risks are acquirers evaluating? FMI’s exclusive focus on engineering & construction offers unique insights into the importance of risk management in M&A. This session will do a deep dive into how the role of the risk manager has transformed from a reactive station charged with diligence to a more proactive, mission critical strategic advisor on the deal. You will also learn what sectors are attracting private equity (and, incidentally, leverage) and new gain insight into what risks acquirers commonly evaluate in deals.

The ‘New Reality’ of Design Responsibility for Contractors and Subcontractors and Common Sense Recommendations

• Ronald Robey – Smith, Currie & Hancock LLP
• S. Elysha Luken – Smith, Currie & Hancock LLP 

Whether by express agreement or unintentionally, contractors and subcontractors are assuming more design risk. Clear and specific design delegation on the front end is a risk that can be fairly analyzed and priced. However, this presentation focuses on when and how contractors take on design risk outside the historical norm and when the contract documents do not clearly assign this risk to the contractor. Assuming design risk not originally intended through value engineering, BIM, constructability review, design assist, the role of shop drawings in “delegated design in disguise,” performance specifications, and “review” of design reflects the current trend for owners to put more design risk on the construction side. The presenters will provide practical advice and specific wording to avoid taking on unexpected design risk. These practical tips can be used by the project office and the field staff and can provide materials for in-house training.

Changes in the Landscape for Captive Insurance: Court Cases, Tax Reform & Recent IRS Guidance

• Mark Morris – Lockton Companies
• Charles (Chaz) Lavelle – Bingham Greenebaum Doll LLP

Several recent court cases and tax reform have significantly altered the landscape for captive insurance. The presentation will cover how contractors use captives including covering risks unique to contractors. Also recent developments have significantly changed the landscape for owners and potential owners. Changes that will be addressed include tax reform, IRS guidance and recent court cases.

Commonly Overlooked Rental Equipment Risks

• David Artzerounian – USI Insurance Services
• Larry Franklin – The Zurich Services Corporation
• Jeffrey Vita – Saxe Doernberger & Vita, P.C.

Join David Artzerounian, Vice President, Client Executive at USI Insurance Services; Larry Franklin, Senior Risk Engineering Consultant, The Zurich Services Corporation; and Jeffrey Vita, Partner at Saxe Doernberger & Vita, P.C., as they discuss risk management concerns and best practices around insuring and contracting for rental equipment.  This session will include real world insurance claims case studies, including the unique exposures faced by upstream and downstream parties on a construction project as well as practical tips for managing the exposures through your insurance program and contractual agreements.

Rain Check: A Hard Look at Weather’s Impact on the Construction Process and the Granular Data Now Promising to Clarify the Risks 

• Mike Bennett – Athenium Analytics
• Jacobus (Jaap) Vrolijk – Bechtel National, Inc. 

Where and how weather can disrupt or delay the construction of a project depends on many things, including the nature of the project and the set of weather conditions that the site could encounter.  During this session, one contractor will share its efforts to evaluate the weather risks for each of its projects.  A leading provider of weather data will then share what it has learned from discussions with construction contractors across the country.  The latter will also share the results of its recent efforts to help contractors address a particularly nettlesome set of projects: transportation, pipeline, powerline and other linear projects that can extend for many miles.  Along the way, the speakers will solicit your thoughts on the weather risks that contractors need to consider and the weather data that would help contractors mitigate those risks.  How can and should you evaluate the weather risks for your projects?  What data do you really need to negotiate the contract terms, to identify and procure the insurance and to devise the operating procedures that will effectively manage those risks?

Know Your Full Surety Team: The Benefits of Collaboration with Surety Claims and Legal Professionals

• Edward Reilly – American Global, LLC (Moderator)
• Stephen Rae – Liberty Mutual Surety
• Richard Towle, Chubb Surety Claims (recently retired)

A panel of surety claims and legal professionals will discuss the benefits to the contractor of establishing and maintaining a strong relationship not only with your underwriters but also with the professional resources found at your sureties’ claims and legal departments.  We will discuss common scenarios including surety completion work, claims being made on a performance bond and unique contract risks on projects – as well as performance bonds drafted for a particularly complex project.

How To ‘Turn the Corner’ on Auto Claim Increases

• Jim Berriatua – Gallagher Global Construction Services

Auto insurance rates continue to increase.  Distracted driving is causing accidents at an alarming rate.  The traditional auto risk management methods have not dented the jump in claims.  Join Jim Berriatua, VP at Gallagher Global Construction Services, for “lessons learned” and testimonials from construction and related companies who have achieved immediate, positive results (i.e., crash avoidance) with a Zero-Accident auto/pickup truck safety program.  Come find out how the construction industry stands to benefit from technology-based collision detection systems.  Discuss how construction firms differ in buying, leasing or not providing vehicles for their employees.

Navigating Uninsured Indemnity Obligations

• Thomas Krider – Oles Morrison Rinker & Baker LLP
• Meghan Douris – Oles Morrison Rinker & Baker LLP
• John Claeys – Parker, Smith and Feek
• Earnest DeLoach, Jr. – Balfour Beatty

With increasing frequency, contractors (GCs and Subs) are being asked to sign agreements in which they undertake to indemnify project owners against any site-related liabilities that arise from their work during construction. The challenge is that these indemnification clauses used to mirror insurable risk – personal injury, property damage, etc. – but now they are so broadly worded that they cover nearly any loss suffered even if that loss is not insurable. This means that contractors are being held legally and financially responsible for losses that are not covered by traditional insurance policies resulting in substantially increased risk. This panel session will discuss the increasing legal and financial risk in today’s indemnification clauses, including:

• The various types of indemnity clauses, including state specific clauses and the impact on your business.
• How to navigate the various types of indemnification clauses in contracts to ensure you are protected.
• The risks of signing indemnification agreements without doing the necessary due diligence.
• Why proportional indemnity is important.
• What insurance typically covers related to indemnity clauses and what it doesn’t.

XBRL Financial Data Standards: Creating Efficiency, Accuracy, and Timeliness in Contractor Financial Transmissions

• Dave Olson – Crowe
• Kristen Sharpe – Crowe
• Michelle Savage – XBRL US

Gain a full understanding on how the new XBRL (eXtensible Business Reporting Language) data standards aim to create efficiency, accuracy and timeliness in the electronic transmission of contractor financial information.  The panel will review the XBRL taxonomies particular to contractor financial statements and work-in-progress (WIP) schedules. Find out the surety “business use case” for XBRL, including how it supports the underwriting process, and possible future impacts on construction financial reporting expectations. Discuss other impacts and trends, such as local government financial reporting. And review available tools and solutions for converting WIP, balance sheet and income statement document (in PDF and Excel) into XBRL files.

Building the Bridge: Attracting, Promoting and Supporting Women in the Construction Industry

• Karen Keniff – CNA (Moderator)
• Tricia Kagerer – Jordan Foster Construction
• Grace Herrera – Predictive Solutions
• Josh Caudill – Safety Leadership Innovators, LLC

One of the biggest risks for the future of construction is the talent shortage. The lack of talent has created the risk of higher prices, missed business opportunities, exposure to subcontractor default and safety issues. Women continue to gravitate to lower paying caregiving roles such as teaching and healthcare. By creating a targeted effort to “build a bridge” in the construction industry for women to enter the construction field at all levels, we eliminate the limited work force risk and simultaneously create future career paths for women.  During this session, the panel will:

• Identify unconscious bias tendencies that impact both men and women from pursuing and promoting women in leadership roles.
• Discuss the “only” phenomenon when one woman achieves a leadership position, which can lead to barriers for other women to join.
• Explore women’s own inhibitions and prohibitions that deter them from entering non-traditional roles in the workplace.
• Provide specific tools for men and women to work together to break down barriers and build a bridge to promote room for everyone.