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Harper | Hayes Wins Insurance Coverage for California-Based Manufacturer of Steel Building Products Involved in Dispute with Project Owner

By August 3, 2023April 26th, 2024Greg Harper, Thom Williams

A leading manufacturer of steel building products agreed to provide complete design and engineering as well as labor and materials to construct five pre-engineered metal buildings in Snohomish, Washington.  After a dispute arose with the Project Owner over allegedly defective and non-conforming work, the manufacturer sought insurance coverage from its Commercial General Liability insurance company—Lloyd’s London.

 

After Lloyd’s denied all defense and indemnity insurance benefits, the manufacturer retained Harper | Hayes to challenge the insurance company’s denial of coverage.  A review of Lloyd’s London’s denial revealed that the insurance company’s refusal to defend and indemnify was unreasonable and violated Washington’s Insurance Fair Conduct Act.  Harper | Hayes attorneys notified Lloyd’s London that its client intended to litigate bad faith claims based on the unreasonable denial of coverage.  Before bad faith litigation commenced, Lloyd’s London reversed course and agreed to provide full insurance coverage for Harper | Hayes’s client.