• Insurers Beware!
  • November 30, 2018 | Author: Anthony P. DeCapua
  • Law Firm: Ruskin Moscou Faltischek, P.C. - Uniondale Office
  • Insurers writing surety bonds beware! It is critical that insurers understand their principals’ construction contracts before they execute and deliver performance and payment bonds for public works projects. A recent decision by the U.S. District Court for the Southern District of New York has held that though an insurer is not a party to the principal’s construction contract with the owner, the insurer’s sole dispute resolution procedure against the owner is arbitration, where the insurer’s bond expressly incorporates the terms of a construction contract containing a sufficiently broad arbitration provision