Allied wants to win in $3 million water damage lawsuit

By Hope Patti (January 14, 2022, 5:10 PM EST) – Allied World Assurance Co. has told a federal court in Florida that it is entitled to recover more than $3 million from Travelers Property Casualty Co., claiming that the insurer had breached an “all risk” policy when it refused to cover a contractor for losses incurred during a sewage treatment plant project.

Allied, which partially insured contractor Garney/Wharton Smith, said in a summary judgment motion on Thursday that Travelers wrongly refused to cover damages when the sewage plant project went wrong.

“In an effort to avoid covering the loss, Travelers incorrectly relies on a faulty work exclusion in its policy, when…

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