Construction claim trends in a changing risk landscape

Posted by & filed under Published Articles.

These emerging trends are challenging traditional construction risk management.

By Stephanie Thomas | August 14, 2025

As construction practices evolve to meet new environmental, technological and efficiency demands, so too do the associated risks.

Three emerging areas are giving rise to increasingly complex claims scenarios: solar farms, data centers, and modular construction. Each involves unique exposures, legal ambiguities and implications for underwriting and risk management.

Solar farms: Small damages, giant verdicts

As the renewable energy sector continues to grow worldwide, the construction of solar farms across America’s rural areas has triggered an uptick in high-severity pollution runoff claims. Though these claims often involve limited physical damage caused by silt or sediment runoff onto neighboring residential properties and waterways, they increasingly result in multi-million-dollar jury awards.

Solar farm construction involves clearing and grading large sections of land, often in rural communities. This phase of construction can lead to significant erosion and major sediment run-off into waterways and neighboring residential properties if the stormwater controls and drainage basins are inadequate. What might begin as a modest environmental incident can escalate into a highly litigious and emotionally charged dispute.

A landmark example of this trend is the Lumpkin Solar case, in which a Georgia jury awarded $135.5 million, including $125 million in punitive damages, to a couple whose private pond was contaminated by runoff during the construction of a nearby solar farm. The actual cost to remediate the damage was estimated at less than $1 million, but the verdict reflected deeper social dynamics: a strong jury inclination to penalize corporations thought to be infringing on rural livelihoods.

These high-dollar claims are rarely driven by catastrophic physical losses. Rather, they emerge from a mix of social inflation, the rise of third-party litigation funding and a growing public skepticism toward industrial-scale projects in rural settings — all resulting in nuclear jury verdicts, defined as verdicts in excess of $10 million. Plaintiffs’ attorneys have recognized this dynamic and are actively seeking similar cases, which is accelerating both the frequency and severity of these claims.

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Free Webinar: Accessibility Issues in Design and Construction

Posted by & filed under Events.

Presented by:
Andrew D. Mendelson, FAIA, Executive Vice President, Chief Risk Management Officer, Berkley Alliance Managers
Michael J. Cremonese, Esq., Member, Burke Cromer Cremonese, LLC
Scott R. Samolovitch, Esq., Associate, Burke Cromer Cremonese, LLC

Tuesday, February 6, 2024
10-11 AM Pacific
12-1 PM Central
1-2 PM Eastern

This webinar addresses the legal and practical effects of the myriad accessibility laws, rules, and regulations on the industry. The webinar panelists will discuss the complex, overlapping statutory and regulatory framework that governs this area of law, and will review current cases from around the country. 

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Design/Construction Standards and Building Codes Evolving to Address Climate Change

Posted by & filed under BDP Blog.

By Andrew Mendelson, FAIA
Executive Vice President, Chief Risk Management & CX Officer
Berkley Design Professional, a Berkley Company

October 23, 2023

Climate change is already having a significant impact on the design and construction industry and this impact is only going to grow in the years to come. Extreme weather events such as hurricanes, floods, wildfires and tornadoes are becoming more frequent and severe and buildings and infrastructure are increasingly being damaged or destroyed.

In response to these challenges, building codes and construction standards are changing to address climate and extreme weather concerns. Local, State and Federal agencies are also working to update design and building requirements, a meaningful factor in the evolution of the standard of care for professionals in the industry.

Changes to building codes and construction standards

One of the most significant changes is an increasing focus on resiliency. Resilient buildings are designed to withstand extreme weather events and quickly regain functionality when damaged.

Specific changes include:

  • Higher wind load requirements: Buildings in areas prone to hurricanes and other high-wind events are compelled to withstand higher wind speeds.
  • Flood-resistant design: Buildings in flood zones are required to be elevated above the floodplain and to have flood-resistant materials and construction methods.
  • Wildfire-resistant design: Buildings in areas prone to wildfires are required to utilize fire-resistant materials and to create site features such as defensible perimeters and flame-resistant plantings.
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Free Webinar: Real-Life Ethical Situations in Design and Construction

Posted by & filed under Events.

Presented by:
Mike Bilderbeck, PE, FASHRAE, Principal Emeritus, Chief Mechanical/Fire Protection Engineer, Pickering Firm, Inc.
Andrew D. Mendelson, FAIA, Executive Vice President, Chief Risk Management Officer, Berkley Design Professional
Jennifer Leach, PE, LEED AP, Associate, BR+A
Kristin L. Schaefer, P.E., PhD candidate, University of Houston, Schaefer Engineering 

Thursday, June 22, 2023
10:00 am – 11:30 am Pacific Time
1.5 AIA Learning Units
1.5 RCEP Professional Development Hours

Berkley DP policyholders who participate in this program can qualify for a 15% Risk Management Education credit. Contact your agent for further information*

As construction projects, project delivery, and owner expectations become increasingly complex, it is more important than ever for design professionals to make proper decisions based on professional standards and codes of ethics. In this webinar, presented by a panel of experts, you will review the process of ethical decision-making and explore actual ethical situations and decisions rendered by review boards. 

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AIA Contract Documents Free Webinar | Top Five Risk Avoidance Strategies for Contractors

Posted by & filed under Events.

Presenter:
Andrew D. Mendelson, FAIA, Berkley Alliance Managers, EVP, Chief Risk Management & CX Officer

Date: Tuesday, April 4, 2023
Time: 1:00 – 2:00 p.m. EST

Construction is a risky business, especially in today’s climate.  Attend a free webinar where expert presenters will review the top 5 strategies contractors can utilize to avoid and mitigate risk on their construction projects.  Presenters will discuss the process for contractors to develop company policies, processes, and protocols to facilitate quality control and financial success, including how to establish a standard process for authorship, review, and approval of proposals and contracts.  The importance of working with design professionals and subcontractors who have experience in the project type; promoting a safe and collaborative work environment; and encouraging thorough communication and sharing of best practices will also be explored during this session. 

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AIA Contract Documents Free Webinar | Top Five Risk Avoidance Strategies for Contractors

Posted by & filed under Events.

Presenter:
Andrew D. Mendelson, FAIA, Berkley Alliance Managers, SVP, Chief Risk Management Officer

Date: Thursday, November 18, 2021
Time: 1:00 – 2:00 p.m. EST

Construction is a risky business, especially in today’s climate.  Attend a free webinar where expert presenters will review the top 5 strategies contractors can utilize to avoid and mitigate risk on their construction projects.  Presenters will discuss the process for contractors to develop company policies, processes, and protocols to facilitate quality control and financial success, including how to establish a standard process for authorship, review, and approval of proposals and contracts.  The importance of working with design professionals and subcontractors who have experience in the project type; promoting a safe and collaborative work environment; and encouraging thorough communication and sharing of best practices will also be explored during this session.

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