Surety Bond Quarterly - Winter 2017 - 32

pollution liability coverage, and property coverage for property owned by
the contractor and used on the project,
among several others.
Although many of the key insurance
terms now appear in the new Exhibit,
some important provisions can still
be found in the revised Article 11 of
the A201. The clauses remaining in
Article 11 mainly concern the adjustment of claims, the consequences for
the failure to procure and maintain
the required coverages, and waivers
of subrogation.

Whereas the prior version of the
A201 called for the contractor to furnish certificates of insurance that
required the insurer to provide the
owner notice of cancellation, the
revised language shifts this notice
obligation to the contractor. This
change was driven by the reluctance
of insurers to undertake this notice
obligation. Similarly, the owner is obligated to provide notice to the contractor in the event that any required
property insurance is not obtained or
is canceled. In either case, the party

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32

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BOND QUARTERLY | WINTER 2017

19/10/17 9:58 pm

receiving the notice of cancellation is
permitted to stop the work until the
lapse in coverage is cured. In the event
that the owner does not procure the
required property insurance, or it is
canceled, the contractor also has the
right to procure the required insurance itself and seek reimbursement
for these costs through a change
order. Under such circumstances, the
contractor is also entitled to an equitable adjustment to the contract time
and sum from any resulting delays.
Furthermore, in the event of a lapse
in insurance, the owner waives any
claims against the contractor and its
subcontractors that would have been
covered by property insurance that
the owner allowed to lapse.
In addition, the revised Article 11
contains new provisions concerning
the adjustment and settlement of
losses covered by property insurance.
It continues to provide that losses
will be adjustable and payable to the
owner, who will serve as a fiduciary
for the other parties. It now also provides a formal mechanism pursuant
to which the contractor can dispute
the owner's proposed allocation of
the insurance proceeds.
With respect to waivers of subrogation, the revised Article 11 extends the
waiver of subrogation to the owner's
"Separate Contractors" who might be
performing work on the property. In
addition, the waivers of subrogation
are no longer required to be included
in a policy endorsement or otherwise;
instead, the language of Article 11 simply provides that the required contractual waiver of subrogation cannot be
precluded by the policy form.
●
Todd R. Regan, Esq., a partner with
Robinson+Cole's Construction and
Surety Practice Group, represents
the full range of construction and
surety industry stakeholders in claims
involving project delays and inefficiencies, defective design and construction, unfair trade practices and
bad faith, and mechanic's liens and
bond claims. Regan serves on the
NASBP Attorney Advisory Council. He
can be reached at tregan@rc.com or
860.275.8293.


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Table of Contents for the Digital Edition of Surety Bond Quarterly - Winter 2017

NASBP Upcoming Meetings & Events
2017–2018 Executive Committee
From the CEO: Looking Backward to Reach Forward
Relationships for the Long Run
Subcontractor Default Insurance: Relevant Considerations for the Surety Claims Professional
Bottom Line Protection with Job Cost Accumulation & Allocation
Inside the AIA’s New Insurance and Bonding Contract Exhibit
The Calm After the Storm: Managing Disaster Response Contracts
Practical Tools to Help Jump-Start Your Company’s Cyber Plan
Index to Advertisers
Surety Bond Quarterly - Winter 2017 - Intro
Surety Bond Quarterly - Winter 2017 - cover1
Surety Bond Quarterly - Winter 2017 - cover2
Surety Bond Quarterly - Winter 2017 - 3
Surety Bond Quarterly - Winter 2017 - 4
Surety Bond Quarterly - Winter 2017 - 5
Surety Bond Quarterly - Winter 2017 - 6
Surety Bond Quarterly - Winter 2017 - 2017–2018 Executive Committee
Surety Bond Quarterly - Winter 2017 - 8
Surety Bond Quarterly - Winter 2017 - From the CEO: Looking Backward to Reach Forward
Surety Bond Quarterly - Winter 2017 - 10
Surety Bond Quarterly - Winter 2017 - Relationships for the Long Run
Surety Bond Quarterly - Winter 2017 - 12
Surety Bond Quarterly - Winter 2017 - 13
Surety Bond Quarterly - Winter 2017 - Subcontractor Default Insurance: Relevant Considerations for the Surety Claims Professional
Surety Bond Quarterly - Winter 2017 - 15
Surety Bond Quarterly - Winter 2017 - 16
Surety Bond Quarterly - Winter 2017 - 17
Surety Bond Quarterly - Winter 2017 - 18
Surety Bond Quarterly - Winter 2017 - 19
Surety Bond Quarterly - Winter 2017 - 20
Surety Bond Quarterly - Winter 2017 - 21
Surety Bond Quarterly - Winter 2017 - 22
Surety Bond Quarterly - Winter 2017 - 23
Surety Bond Quarterly - Winter 2017 - 24
Surety Bond Quarterly - Winter 2017 - 25
Surety Bond Quarterly - Winter 2017 - Bottom Line Protection with Job Cost Accumulation & Allocation
Surety Bond Quarterly - Winter 2017 - 27
Surety Bond Quarterly - Winter 2017 - 28
Surety Bond Quarterly - Winter 2017 - 29
Surety Bond Quarterly - Winter 2017 - Inside the AIA’s New Insurance and Bonding Contract Exhibit
Surety Bond Quarterly - Winter 2017 - 31
Surety Bond Quarterly - Winter 2017 - 32
Surety Bond Quarterly - Winter 2017 - The Calm After the Storm: Managing Disaster Response Contracts
Surety Bond Quarterly - Winter 2017 - 34
Surety Bond Quarterly - Winter 2017 - Practical Tools to Help Jump-Start Your Company’s Cyber Plan
Surety Bond Quarterly - Winter 2017 - 36
Surety Bond Quarterly - Winter 2017 - 37
Surety Bond Quarterly - Winter 2017 - Index to Advertisers
Surety Bond Quarterly - Winter 2017 - cover3
Surety Bond Quarterly - Winter 2017 - cover4
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