Offshore constructions and LEG 3
In November 2023, an arbitration court had to decide over 10 court days on a number of fundamental questions in the intersection between insurance law and construction law. The subject matter was + 200 million DKK. Existing case law in this field is very sparse.
Taking out construction insurance – including considerations about optional cover – is a natural element in companies’ risk management. Holger Schöer and Pernille Svit Westphal Riis represented an international contractor consortium in a dispute against an insurance company and the insurance company’s customer regarding the execution of and damage to a major offshore construction (cofferdam). Among other things, the extensive case concerned questions about coverage under a LEG3/DE5 construction insurance, including what can be considered an “unforeseen event” and what effect the behavior of the parties up to and during the damage and repair period may have on the scope of coverage, as well as questions about unforeseen ground conditions. The handling of the case has also provided in-depth knowledge of the burden of proof issues, how insurance companies and insurance brokers cooperate regarding the underwriting of construction insurance policies, and the practical handling of claims reports, including the scope of documentation.