Construction can be a dangerous activity. Despite increased attention to job safety over the last several decades, accidents on construction sites continue to occur. These accidents frequently result in bodily injuries, property damage, project delays and resulting economic losses. As a result, those involved in construction should plan carefully not only how to minimize the risks of accidents but how to maximize their insurance and indemnification recoveries should an accident happen.

Getting Started

As a first step, take stock of the different types of losses and liabilities involved in the accident. These can include 1) bodily injuries, including death, 2) property damage both to the project itself and to neighboring property, and 3) project delays. Once you understand the potential losses and liabilities resulting from the accident, the next steps are to identify potential sources of recovery, including other project participants, their insurance companies, and your own insurance, to put them all on notice of the event and any claims resulting from it, and to demand defense and indemnity as appropriate. As part of this process, you will need to consult the contract documents, which typically provide for insurance and indemnity obligations, and may also provide for liquidated damages for project delays.

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