Liberty Mutual recently announced that it has reached a settlement with Travelers Insurance over an insurance liability dispute in a personal injury lawsuit at a construction site. The case involves a man who fell and was injured in the elevator shaft of the renovation project of New York University Hospital. The injured man, Oscar Marin, has sued the general contractor Suffolk Construction and its subcontractor Maccarone Plumbing. Liberty Mutual, as the insurance company of Suffolk, has borne its defense and compensation costs, but believes that Travelers, as the underwriter of the subcontractor Maccarone, should fulfill its insurance liability to Suffolk in accordance with the subcontracting agreement.
Liberty Mutual pointed out that Maccarone’s subcontracting agreement requires it to provide insurance coverage for Suffolk and list Suffolk as an additional insured. Although Liberty Mutual repeatedly demanded that Travelers assume relevant responsibilities, the latter initially refused to fulfill the obligations, prompting Liberty Mutual to file a lawsuit in February 2025. The lawsuit demands that Travelers recognize Suffolk’s status as an additional insured and compensate for the defense costs incurred.
At present, the two sides have reached a settlement. Liberty Mutual submitted a notice to the court, suggesting that the settlement process be completed and the lawsuit be withdrawn within 60 days. This case highlights the complexity of insurance liability division in construction projects, especially the issue of risk allocation between general contractors and subcontractors.
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