The Company and Its Challenge
A construction company faced a mold-related claim potentially totaling $6 million. The company’s general liability carrier denied the claim and its outside counsel agreed with the carrier’s position that coverage did not apply. The company’s leadership believed, however, that with better claim advocacy, the company could collect the claim and looked to Marsh for assistance.
The Risk Consulting Approach
Marsh reviewed the obstacles to collecting the claim that other parties raised but also identified strategies for challenging the carrier’s position in an attempt to get the carrier to compromise. To this end, Marsh consultants developed theories of liability against a subcontractor and placed the subcontractor on notice.
Marsh consultants also:
Reviewed all correspondences among all parties relating to the mold issue
Reviewed all contracts, including the master contract, and all contracts with subcontractor
Results
Marsh negotiated a contribution of $1 million from a subcontractor’s insurance carrier. Additionally Marsh worked with the client’s outside counsel to collect an additional $1 million from its professional liability carrier. Marsh also assisted the client in settling the liability for $3 million — half of what the client initially thought it could be. The company itself had to pay only $1 million because of Marsh’s success with the subcontractor’s carrier and the general liability carrier.
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