When a contractor is sued for damages, the claim may be covered by a general liability insurer, where the work was undertaken by a subcontractor because the our work exclusion does not apply. In that event, the general contractor’s insurance company accepts defense, but under a reservation of rights. Thereby, the insurer comes into conflict with the insured, and the insured contractor may be entitled to select their own counsel to represent them with the insurer obligated to pay the costs of defense for the insured. We have been selected on a number of cases by contractors in such circumstances because of our knowledge and experience rather than the contractor consent to counsel selected by the insurer.

We have also prosecuted claims against insurers for breach of the duty to defend. We have defended surety claims for the contractor under a tender of defense by the surety to the contractor, and also we have represented contractors in cases instituted by their surety seeking to recover indemnity on performance bond claims. Sureties have an obligation of good faith and fair dealing when acting as surety in order to recover indemnity from their principal.