Source: Miller Insurance

The Claimant is the owner/developer of a planned, mixed-use commercial development site. The Insured acted as a design-build contractor responsible for the bulk of the design and construction work at the Project. The Insured’s design was to be based on the Claimant’s architectural design. The Claimant sued the Insured alleging defects and deficiencies, delay, the retention of an unlicensed subcontractor, failure of the Insured to supervise the Project, and failure to properly coordinate the design. The Complaint also contained counts of negligence, bad faith, breach of implied warranty of workmanship, and breach of express warranty. As the allegations involve a combination of design and construction defect allegations, the Insured’s professional and general liability policies are both implicated and are sharing defense costs. Lesson Learned: Thoroughly review a subconsultant’s or subcontractor’s credentials and make sure they have insurance before retention.