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How would the insurance work on something like this? Would the construction company which cut the line have to cover loss revenue for the entire airport? Airlin
by Overtonwindow 9y ago
How would the insurance work on something like this? Would the construction company which cut the line have to cover loss revenue for the entire airport? Airlines? Passengers?
- bdonlan 9y agoThe construction company would likely be liable in the end, with their liability insurance paying. If they properly arranged for utility location services and those failed to mark the conduit then that service might have liability instead. Other non-liability insurance policies might apply as to the airport and airlines and would presumably have subrogation rights against the liable party.
- danielvf 9y agoAn acquaintance of mine works for a high precision concrete paving company. The specialize in airports and data centers. Their contracts often specify a penalty rate for important data cables. Sometimes this would be $120,000 per minute that the cable is down. I think it was even an order of magnitude higher for some cables when they were working near Amazon’s data centers in Northern Virginia. Given that it would usually take two hours for a cable to be repaired, a single hit would be millions to tens of millions of dollars in fees. This resulted in a NASA like level of paperwork, checklists, and team communication before anyone so much as put a shovel into the ground on the worksite.