The construction industry is a high-stakes environment where unforeseen risks can derail a project.  DFL Legal provides strategic legal counsel to help owners, contractors, subcontractors, project managers, construction managers and engineers navigate the complex landscape of construction insurance.  Our proactive approach focuses on mitigating risk before issues arise, but when a dispute occurs, we are relentless advocates for maximizing your insurance recovery.

Whether you are dealing with catastrophic loss, construction defects, design errors, force majeure events or engineering defects, our team has deep industry knowledge and litigation experience to protect your interests.  We work across the full spectrum of construction insurance issues, including:

  • Builders Risk: We have years of experience in assisting contracting parties in recovering for losses under Builders Risk and other forms of “all-risk” policies.
  • Commercial General Liability (CGL): We secure coverage for property damage, personal injury, and accidents that occur during a project.
  • Professional Liability: We represent design professionals in claims involving errors or omissions in their plans and specifications.
  • SDI: We represent contractors in obtaining insurance for subcontractor default insurance.
  • OCIPs and CCIPs: We navigate the complexities of Owner-Controlled and Contractor-Controlled Insurance Programs to resolve disputes effectively.

Our work begins long before a claim is filed.  We partner with you at every stage of a project to:

  • Draft and negotiate contracts: We ensure your agreements include robust insurance and risk-transfer provisions that protect your assets.
  • Provide strategic counsel: We advise on non-litigation matters, such as risk management, coverage evaluation, and claims prevention.
  • Litigate on your behalf: When a dispute escalates, we are known for our tenacious advocacy and our ability to achieve winning results.  We have litigated or arbitrated successful claims for coverage under builders all-risk, construction all-risk, professional, commercial general liability, ocean marine cargo, bridge and tunnel, DSU (delay-in-startup), consequential loss, efficacy, SDI, prime guard and excess insurance policies.
  • Deliver cost-effective results: We identify critical issues early to resolve cases efficiently, minimize liability, and keep your projects on track.

The construction industry is constantly evolving, with new challenges from supply chain disruptions to new technologies. We stay at the forefront of legal and industry changes to ensure our clients are always prepared.  With decades of combined experience, our group offers practical, forward-thinking solutions that empower you to build with confidence.

Representative Matters

Examples of our insurance coverage engagements include the following:

  • Lead trial counsel for a joint venture contractor in connection with claims for damage to a tunnel boring machine (TBM) on the Alaskan Way Viaduct replacement tunnel project in Seattle, Washington.  The Washington State Department of Transportation was the owner of the project, which was over $1 billion and, at the time, the TBM was the largest ever constructed and used.  During construction of the tunnel the TBM was damaged when it encountered a steel pipe in the tunnel alignment.  Contractor’s total damages for investigating the damage and repairing the TBM exceeded $500 million.  Contractor litigated the insurance claim in Washington State court against its London-based and European-based builder’s risk insurers for denying insurance coverage.  The litigations involved multiple other parties and claims, which were consolidated for discovery purposes resulting in the taking of over 130 depositions and the production of millions of documents.  In addition, DFL Legal facilitated the translation of hundreds of thousands of documents from Japanese and Spanish to English and the subsequent review of those documents.  The insurance claims went to a jury trial in King County Superior Court before a favorable settlement was reached during the first week of trial.
  • Lead trial counsel for joint venture contractor in a dispute with their builder’s risk insurers in connection with a nearly $100M loss suffered on the $3+ billion dollar I-64 bridge and tunnel expansion project for the Virginia Department of Transportation. The contractor was an unincorporated joint venture consisting of large American contractors and a French company.  The project, the largest in VDOT history, involved expansion of currently-existing causeways and artificial islands, and creation of two new tunnels under the Chesapeake Bay.  Following litigation in the United States District Court for the Eastern District of Virginia, as well as multiple rounds of mediation, DFL Legal was able to obtain a favorable settlement from Insurers for a significant portion of contractor’s claim.
  • Lead arbitration counsel for a national construction company in multiple disputes with its insurance carrier relating to subcontractor default insurance (SDI). The carrier had denied coverage in whole or in part for several SDI claims relating to defaulting subcontractors on numerous multi-million dollar projects throughout the country involving commercial and mixed-use development, state and public construction, and transportation and infrastructure projects.  The total amount of the unpaid SDI claims exceeded $75 million and involved three separate AAA arbitrations.  One week-long arbitration before a three-person panel resulted in an award being issued in our client’s favor.  Another arbitration involved 19 days of testimony and then was resolved favorably to our client by settlement before an award was issued.  The third arbitration was ongoing at the time and was also resolved by settlement.
  • Lead trial counsel for a manufacturing company in a declaratory judgment action filed by multiple insurance companies related to insurance coverage for the company’s asbestos-related liabilities. The litigation is pending in federal court in Pennsylvania and involves coverage disputes under decades of primary and excess/umbrella general liability policies.
  • Lead counsel for a joint venture EPC contractor in claims against the construction all-risk insurer arising from damage to a liquefied natural gas facility caused by storm surge from Hurricane Ike. After resolving disputes over the arbitrability of the claims, DFL legal successfully negotiated a favorable resolution for the contractor.
  • Lead trial counsel in federal court jury trial for international coal broker in insurance coverage action against ocean marine cargo insurer regarding multi-million dollar claim for lost coal, which ultimately resolved in favor of the policyholder through settlement before closing arguments.
  • Lead coverage counsel for a California contractor in dispute with its SDI carrier related to several claims on a mixed-use development project. After the exchange of information and mediation, DFL legal successfully negotiated a favorable resolution for the contractor.
  • Lead trial counsel in successful insurance claim on behalf of equestrian farm related to hail and windstorm property damage.
  • Lead coverage counsel for national law firm in obtaining E&O coverage for malpractice claim.
  • Lead trial counsel for joint venture turnkey design/build contractor against insurers in connection with a coke battery rebuild project located in Burns Harbor, Indiana with a value of US $126 million plus DM 46.0 million. In the main action, the owner claimed that the battery was defective as constructed in that its projected useful life was alleged to be less than one half of that which was expected at the time of contracting. The case was designated complex under the local court rules. The coverage action was against the All Risk, professional indemnity and CGL carriers. Just prior to trial, the case was submitted to an extended mediation process before a highly respected and nationally recognized mediator. The mediation involved all interested parties, including the insurance carriers, and resulted in settlement favorable to the defendants.
  • Lead trial counsel for owner of a power project against its ocean marine insurer on a delay-in-start-up claim. Power plant equipment was damaged during shipment from Japan to the United States when the vessel transporting the equipment encountered a typhoon. The owner incurred additional costs to mitigate resultant delays. The insurer denied coverage and filed a declaratory judgment action alleging that the owner failed to obtain a survey warranty. Upon the owner’s motion for summary judgment, the trial court held that the owner’s claim was covered under the applicable policy. The trial court’s judgment was affirmed on appeal.

Practice Areas