M3 Risk Transfer Expertise Saves Multi-Million Dollar Project

Construction & Real Estate, Property & Casualty


A commercial general contractor.


M3’s client, a commercial general contractor, was trying to go into contract with an owner to renovate a substantial portion of the owner’s facility. This project was estimated to be a multi-million dollar project.

The risk management concern became, “What if these construction renovations caused substantial damage to the existing building?”

The owner pointed out that their property insurance company would pay for the potential damage, but likely in turn sue our client for the damage the construction operations caused. The owner worked with a generalized agent that didn’t have specific construction experience, and this agent felt the general contractor’s general liability policy should ultimately bear the loss.


This issue was brought to M3 for resolution.

In this situation, we advised that it is long-standing principal to structure property insurance to handle this sort of risk. It is not best practice to have liability-driven lawsuits between the parties to the project as a solution.

M3 suggested that the owner purchase an endorsement from their property insurance company that covers damage to existing structures. The owner and their agent were unaware of this risk transfer method.

Without this solution, it is likely that this project would not have taken place. M3’s solution removed the impasse, and the contract was signed.

M3 formed a specialized construction & real estate practice group for these very moments. By building teams with experience specifically in this industry to serve general contractor clients, we are able to uncover unique strategies that generalized brokers would not bring to the table, successfully transfer risk, and ensure our clients’ businesses continue to grow.

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