Dealing with the elements is an inherent part of construction work. Yet, sometimes the elements get unexpectedly unruly. This is where insurance is supposed to step in and compensate for delays or damage. In the following case, however, overlapping insurance policies made determining who should step up difficult.
Gibbs Construction, L.L.C was the general contractor for appellant National Rice Mill, L.L.C. Rice Mill hired Gibbs to renovate their new luxury apartment complex, Rice Mill Lofts. Gibbs hired Rush Masonry, Inc. as a subcontractor tasked with restoring the masonry related to the renovations. Before the renovation, Westchester Surplus Lines Insurance Company issued Rush Masonry a commercial general liability policy. This policy covered the restoration from February 2011 to February 2013. On top of the CGL coverage, the Fireman’s Fund Insurance Company also issued an excess liability policy to Rush Masonry during the same time period. A Zurich American Insurance Company CGL policy issued to Gibbs, the general contractor, also covered the restoration. The Zurich policy was in effect from January 2011 to January 2013.
During the restoration, the construction site experienced three instances of water intrusion. The first occurred during a thunderstorm in July 2011, and the second happened during Tropical Storms Lee and Isaac. General contractor Gibbs filed a lawsuit against Rice Mill for failure to make payments under the general contract. Rice Mill counter-claimed against Gibbs, Rush, Zurich, and other parties.