Client Profile
Industry: Construction
Specialty: Large Commercial Contractor
Location: Tennessee
Claim Information
Description: One of our Insureds had a contract with a customer to perform construction services, which also involved several subcontractors. The customer, a hotel, alleged several defects in workmanship and services deemed to be defective under the contract. As a result of the defects in workmanship, the hotel asserted that they were unable to open on time and consequently lost revenue. In turn, they withheld funds from the Insured. Despite involving an attorney and protecting their interests, the Insured was unable to collect the withheld funds. Through their Captive's Actual Net Loss Insurance Policy "Contractual Liability" coverage, they were able to recover the amount which was withheld under the contract.
Line of Coverage: Contractual Liability
This exposure was elected for coverage by the client under their Captive Policy. This resulted in a claim payment amount of approximately $200,000.