General Contractor Insurance Claim Scenarios

While performing building renovations, a general contractor used gas powered generators and equipment. The contractor failed to properly vent or contain the emissions from the equipment during operations. Employees working in a nearby area of the building complained of headaches, nausea and respiratory problems. The results of an air quality study concluded that the increased carbon dioxide levels in the building resulted from the construction equipment. The contractor was liable for causing building-related illnesses that resulted in 30 bodily injury claims totaling over $100,000.

A general contractor was responsible for overseeing the renovation of a hospital wing. When two patients died in the intensive care unit adjacent to the construction zone, the contractor was sued for inadequate monitoring and containment of the construction zone. The patients’ cause of death was determined to be an organic fungus found in the ventilation system, and traced back to dusts generated during demolition activities in the construction zone. The contractor apparently misinterpreted construction drawings with regard to the connection of the duct system for the renovation zone and the intensive care unit. The general contractor was responsible for $10 million in damages.

A commercial developer retained a design/build delivery system for the construction of a multi-story office building. The general contractor’s project manager failed to check the adequacy of the safety netting system installed in connection with the project’s roof installation. A worker fell and sustained injuries, and his attorney alleged inadequate safety controls and monitoring on the part of the general contractor. The contractor’s general liability policy contained a professional services exclusion. The general contractor was responsible for damages exceeding $300,000.

These claims examples have been provided to us by our insurance companies over the years. These represent actual environmental claims they have seen. While the coverages we offer are designed to address these general issues, we make no guarantee or warranty that any individual policy we offer will respond to all issues as described herein. Please refer to the actual policy wording in each offered form to determine coverage applicability and acceptability.