The Subrogation Strategist

Investigating construction related claims involves more than just figuring out who is at fault. Construction contracts are often full of liability limiting provisions meant to allocate risk among the parties. A prime example is the consequential damages waiver provision, a clause that limits or waives a party’s ability to recover certain losses that do not flow directly from a breach of contract. In the construction context, consequential damages can include lost profits, loss of use, and financing costs. In contrast, direct damages are the immediate costs incurred to correct ... Continue Reading

If a fire or flood destroys a high-net-worth client’s fine art collection, an insurer who pays out a claim related to the loss has an incentive to pursue subrogation. This article explores some of the issues an insurer should “canvas” before pursuing subrogation for these types of claims.

Damage to fine art can occur in a number of ways. For instance, fine art may be damaged in a natural disaster - such as a flood or a wildfire. Artwork may also be accidentally damaged because of a transportation-related incident physically damaging the art. In addition, artwork may suffer fire or smoke damage from a fire within a building. Another possibility is that the artwork suffers damage because of renovations either to the insured’s home or a neighboring property. For example, a renovation contractor may damage artwork due to vibrations or leaking water. A construction worker, moreover, may turn with a tool in his hand, or trip and fall, damaging the artwork.Continue Reading