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Airport authority sues insurance carrier for $9.2M

August 23, 2013

The Indianapolis Airport Authority is suing an insurance carrier that provided coverage during construction of the airport’s midfield terminal, claiming the company failed to pay millions of dollars the authority incurred following a construction collapse.

Filed this week in U.S. District Court in Indianapolis, the authority’s lawsuit claims Hartford, Conn.-based Travelers Property Casualty Co. of America owes it $9.2 million on a claim it made totaling about $13.4 million.

The authority said it purchased a builder’s risk policy from Travelers for all phases of construction of the $1.2 billion terminal, which began in July 2005.

Less than two years later, on Jan. 24, 2007, a steel-beam collapse jeopardized the terminal’s scheduled opening by pushing back  construction five months and delaying the opening until February 2009, according to the suit.

But because of the efforts and expenses undertaken by the authority to reduce the delay in completion, the project opened in November 2008, about three months earlier than it would have if the authority had not agreed to the additional expenses, the suit said.

The authority’s suit is asking that Traveler’s pay the $9.2 million it incurred to mitigate the delay in opening the terminal. The authority said it paid extra to resolve change orders and claims brought by contractors and consultants, to investigate and inspect the construction site to assess repairs, and for overtime.

A call to Traveler's for comment was not immediately returned Friday morning.

 

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