Zurich Insurance has taken Lendlease and Starr Indemnity to federal court, claiming they wrongfully denied coverage for a construction accident in New York City.
The lawsuit, filed October 9 in the United States District Court for the Southern District of New York, centers on a personal injury case stemming from a September 2019 accident at a construction project on 1185 Broadway. Zurich, a Swiss insurance company, says it has been forced to defend its insured, Global Precast, Inc., after Lendlease and Starr refused to provide coverage under a Contractor Controlled Insurance Program (CCIP) tied to the project.
According to Zurich’s complaint, the dispute began when a worker, Thomas Byrnes, allegedly suffered injuries from a fall at the site. Byrnes and his wife sued several parties, including Global Precast, in New York state court, seeking damages for bodily injuries and loss of consortium. The project’s owner, RP1185 LLC, and construction manager, Lendlease, then brought a third-party action against Global Precast, alleging negligence, strict product liability, breach of warranty, contractual indemnification, common law indemnification and/or contribution, attorneys’ fees and expenses, and breach of contract for failure to procure insurance.
Zurich claims that the CCIP, which included a commercial general liability policy issued by Starr to Lendlease, was supposed to cover enrolled subcontractors like Global Precast for on-site incidents. The policy, Zurich alleges, required Lendlease to pay the first $2 million of any claim, with Starr covering amounts above that, up to $5 million per occurrence and $10 million in total.
But Zurich says Lendlease and Starr, through their claims administrator Sedgwick, denied coverage for Global Precast, arguing that the company’s work was limited to off-site fabrication and thus not covered by the CCIP. Zurich disputes this, pointing to trade contracts and the CCIP manual, which it claims required Global Precast to perform on-site labor, including installing and inspecting precast concrete panels.
Zurich’s complaint highlights a letter from Sedgwick, dated August 31, 2020, which stated that the CCIP “covers claims for injuries or damages caused by the negligence of CCIP members for on-site liability.” Sedgwick’s investigation, according to the letter, concluded that the damages were caused by the off-site fabrication of a precast slab, and therefore not covered. Zurich, however, contends that this disclaimer was premature and based on an incomplete investigation, insisting that Global Precast was performing on-site work at the time of the accident and was enrolled in the CCIP.
The underlying actions are scheduled for trial on October 16, 2025. Zurich’s complaint was filed on October 9, 2025.
Zurich says it has incurred defense costs and expenses under its policy for Global Precast and seeks a court declaration that Global Precast is entitled to coverage under the CCIP. The insurer also seeks a declaration that Lendlease and Starr must defend and indemnify Global Precast on a primary and non-contributory basis, and that Zurich should be reimbursed for all defense costs and expenses it has paid or will pay. Zurich is also asking the court to order Lendlease and Starr to pay any indemnity costs arising from the underlying actions, plus pre and post-judgment interest, and attorneys’ fees.
The case underscores the complexities of insurance coverage in large-scale construction projects, especially when multiple parties and layered insurance programs are involved. At the heart of the dispute is the interpretation of what constitutes “on-site” work and who bears responsibility for defending and indemnifying subcontractors when accidents occur.
For insurance professionals, the outcome could have significant implications for how CCIP and commercial general liability policies are administered and how claims are managed in the construction sector.
