Source: Miller Insurance

The Insured provided general contracting and construction management services for the construction of a four story, 83-unit apartment building. After construction had started, the Insured discovered a survey error that was made by its survey subcontractor. The error resulted in the construction of a larger structure, resulting in added construction costs. Our team assisted the Insured in getting these costs paid by the Insured to its subcontractors with no reimbursement from the owner. Our team members worked with the Insured to file suit against the survey subcontractor seeking to recover those costs. The matter was subsequently resolved with a significant contribution from the survey subcontractor. Lessons Learned: Proactive risk management internally and with the claims administration team can help reduce costs.