Claims professionals are charged with making complex decisions on a daily basis, some of which have huge financial implications. Understanding the way decisions are made, authority structure and who the real decision makers are can help the claims professional in both properly analyzing options and in persuading others regarding suggested actions. Decision making, therefore, is one of the most important skills a claims professional can possess. The application of a structured decision making process can bring discipline and increased rationality and decreased error due to either personal or group bias.
More than 95% of construction defect claims are resolved by settlement. These claims and cases present unique negotiation challenges which need to be anticipated early in the handling of the claim, recognized when they arise, documented and timely resolved. Construction defect claims may be handled in a variety of ways depending on the nature of the claim, the profile of the policyholder, the procedural posture of the matter, the jurisdiction(s) in which the the claim is pending and the policy(ies) issued.
Coverage analysis and ability to recognize the potential consequences of coverage issues (lack of coverage, limited coverage, other coverage, etc.) are the cornerstone of any construction defect claim. Construction defect claims are almost unique in that there are inherent coverage issues almost every time a suit is filed.