Source: Miller Insurance

The design build contractor on a solar energy project retained a structural engineering sub-consultant to design the steel frame supporting a large solar-panel array. The contractor had a very short completion schedule, with substantial penalties if the project did not open as required under the contract. After the structure was erected, and half of the panels installed, the structure collapsed due to a design error. Not only were the existing panels damaged, but the spectre of a substantial delay confronted the design-build contract. Lessons Learned: Having rectification coverage allowed us to treat this as a “rectification claim” as opposed to a professional liability claim which requires a demand for money or services, and our team members worked with the design-build insured, the structural engineer and its insurer to develop a revised design on a fast track basis. The team also determined what portion of the design-build contractor’s internal costs were allowable damages under the policy. Reassured by our approach, the design-build contractor could move quickly to obtain alternate suppliers. The loss was adjusted, recovery was obtained from the structural engineer, and the project avoided a substantial delay.