A Texas general contractor is suing six of its own CGL insurers, alleging every one of them walked away when years of progressive facade failures triggered a defense obligation.
Mycon General Contractors, Inc. filed suit on April 6, 2026, in the US District Court for the Northern District of Texas, naming Employers Mutual Casualty Company, Liberty Insurance Corp., Amerisure Insurance Company, Hartford Fire Insurance Company, Zurich American Insurance Company, and Arch Insurance Company as defendants. The case, docketed as No. 3:26-cv-01098, centers on whether those carriers owe Mycon a defense and indemnity in an underlying construction defect dispute — and whether their refusal to provide either crossed the line into bad faith.
The story begins in 2013, when Mycon was hired to build the McKinney Corporate Center Project in McKinney, Texas. Exterior masonry work was subcontracted to Galindo & Boyd Wall Systems, LLC, and construction wrapped up by summer 2014. But the building did not age well. According to the court filing, cracks appeared at the foundation in 2016. The west side of the facade began cracking and delaminating. By February 2021, veneer stone had reportedly fallen from significant elevations, causing property damage. Then, on or about March 19, 2024, large areas of the facade failed - separate and apart from previously repaired sections.
The project's current owner, Eagle Tree Partners-McKinney, LLC, sued Mycon in March 2024, alleging the original stonework was defectively installed and that the defects were "latent and otherwise undiscoverable." That lawsuit is still pending in Collin County, Texas.
Mycon, in turn, tendered the claim to its insurers. According to the filing, the company had maintained continuous CGL coverage across all six carriers from December 2013 through 2025, each policy carrying a $1 million per-occurrence limit and a $2 million aggregate. All six carriers allegedly denied coverage, each pointing to the same core argument: that the property damage fell outside their respective policy periods. Some also cited policy exclusions.
What makes the case especially notable is the allegation involving Arch Insurance Company. According to the filing, Arch initially accepted the claim and began providing a defense - then reversed course and withdrew coverage in April 2025.
Mycon is pressing five causes of action: breach of contract, declaratory relief, breach of the implied duty of good faith and fair dealing, violations of Chapter 541 of the Texas Insurance Code, and violations of the Texas Prompt Payment of Claims Act. The TPPCA allegations are pointed. The filing claims that EMC, Liberty, and Zurich failed to even acknowledge the claim or begin an investigation within the 15-day window the statute requires. Amerisure and Zurich, it alleges, did not cite a single policy exclusion in their initial denial letters.
Mycon is seeking more than $1 million in damages, along with treble damages, exemplary damages, attorneys' fees, and 18% statutory interest.
No court has made any determination on the merits. The case remains in its earliest stages, and the defendants have not yet responded. Still, the filing lays out a scenario that insurers and claims professionals will want to watch - particularly those managing long-tail CGL exposure in the construction space, where progressive damage and overlapping policy periods continue to generate costly disputes.
