Facts: Insured provided structural engineering services in connection with a structural podium, which was to support a 4 story wood frame condo. Insured contracted directly with the developer/GC. The insured discovered that there were beams, which were undersized in the structure.
Claim against the insured: Initially it was believed that beams were undersized and needed to be redesigned. During the investigation process, it was discovered that there were several other issues requiring remediation. Initial repair estimate was approximately $60,000.
Other remediation issues: loss of parking spaces, beams were too shallow as compared to the original design
Defenses: None, the insured admitted liability, including an agreement to redesign. It was hard to argue that they were not solely liable for the issued involving the shear reinforcement for the columns.
Policy Limit: $2,000,000 per claim, $160,000 deductible.
Resolution: Insured paid $1,059,677 to settle this matter.