Court Case Over Construction Coverage A Cautionary Tale For Insurers

When Moorefield Construction built a Best Buy, it knew there was more moisture vapor emitting through the structure’s concrete than there should have been. The general contractor expected no problems based on previous work and with a deadline looming for opening day, it told its flooring subcontractor to push ahead with installing floor tiles. The carpet tiles “failed” and the Navigators Specialty Insurance Company filed a liability suit against Moorefield. Navigators originally insured Moorefield, paying for its legal fees and paying part of the eventual settlement but then sued to recoup its losses.