Acquiring Co-Insurer Coverage Aid In Fla. Builder Defect Suits, Published in Law360

In an article published on March 26 in Law360, Segal McCambridge Shareholder Nick Richardson discusses Florida's construction defect litigation landscape, insurance coverage challenges, and strategic approaches to securing co-insurer participation in defense. Richardson provides critical insights into how carriers can navigate the complexities of additional insured coverage and policy exclusions in an era of expanded builder liability exposure.

"Carriers in the crosshairs must act diligently to ensure they are not the only carrier left holding the proverbial defense bag and must work to get as many carriers on the risk as possible," Richardson writes, emphasizing the importance of coordinating multi-carrier defense strategies in construction defect cases.

The article highlights how Florida's 2024 reduction of the statute of repose to seven years has triggered an influx of construction defect lawsuits, creating unprecedented challenges in coverage disputes and additional insured issues. Richardson examines key legal concepts, including trigger theory determinations and the strategic use of exclusions, while also addressing emerging carrier tactics such as requiring insured documentation to identify coverage gaps and potential broker errors.

"Given the exposure of these coverage lawsuits and the defense of insureds and additional insureds, carriers must continue to look for new ways to ensure participation in the defense of these cases from as many carriers as possible," Richardson concludes, underscoring the evolving landscape of construction defect insurance litigation.

Read the article in full, click here (subscriber-based).