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PEYMAN A. NEJAD • November 25, 2022

Professional Indemnity Insurance Exclusions


How can you address PI exclusions while maintaining your professional obligation?


The Construction Leadership Council’s survey in early 2021 found that 78% of practices had some form of fire safety or cladding-related restriction on their policies. Of these, a significant proportion could only obtain PI insurance with blanket exclusions for fire safety advice that apply to all elements of a building. The wording of limitations varies, but it is not uncommon for such exclusions to cover all building types, making no distinction between higher risk tall buildings and a single storey residential project.

local law 97, construction claims, litigation, dispute,  tall building sustainability, tall building decarbonization.
By PEYMAN A. NEJAD May 6, 2024
Local Law 97, a pioneering legislation within New York City's sustainability initiatives, aims to drastically reduce greenhouse gas emissions from buildings, particularly impacting tall buildings structures. With buildings accounting for a significant portion of urban emissions, this law imposes stringent energy efficiency and emissions limits on large buildings, including many tall buildings structures. By targeting buildings over 25,000 square feet, which often include tall buildings, the law sets ambitious goals of 40% emissions reduction by 2030 and net zero emissions by 2050. Key Provisions and Implications The law establishes carbon intensity limits per square foot for covered buildings, progressively tightening over time. Tall buildings, known for their substantial energy consumption and emissions, face significant challenges in meeting these stringent standards. Owners must implement energy efficiency upgrades, transition to cleaner energy sources, and potentially overhaul heating systems, posing considerable financial and logistical hurdles. Non-compliance carries substantial penalties, incentivizing proactive measures for real estate building owners to adapt and comply. Compliance Strategies and Support Real Estate buildings owners have a range of strategies at their disposal to achieve compliance, including energy audits, efficiency upgrades, renewable energy adoption, and financial incentives. In particular, the transition to electrification and renewable energy sources presents opportunities for tall buildings to reduce emissions and align with the law's objectives. NYC provides resources such as advisory services, financing options, and incentives to support owners in navigating compliance requirements. Collaboration with energy management consultants and leveraging available support can streamline the compliance process for tall building owners. Future Expectations and Impact As the law phases in emission limits through 2050, real estate building owners face a transformative journey towards decarbonization. This entails not only meeting current standards but also anticipating future regulatory developments and technological advancements. The transition to clean energy and efficient building practices will not only mitigate environmental impacts but also position tall buildings as leaders in sustainable urban development. Local Law 97 sets a precedent for other cities globally, highlighting the critical role of tall buildings in combating climate change and fostering resilient, low-carbon cities.
construction legal advice. construction law. construction claims advice. claims consulting.
By PEYMAN A. NEJAD October 13, 2022
construction legal advice. construction law. construction claims advice. claims consulting.
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