Favourable settlement reached under CAR/EAR policy
18.07.2023
An out-of-court settlement advantageous to both parties was reached on 11 July 2023 in an insurance dispute involving a CAR/EAR policy and risks of design defects.
The dispute between the insurer and the insured investor involved construction of row housing. At the execution stage a loss was discovered (design defect) requiring implementation of a remediation plan, including various types of construction and installation works. The total loss was calculated at over PLN 10 million and affected the structure of the buildings.
The insurance company was notified of an event partially falling under the construction all risks/erection all risks (CAR/EAR) policy, and the value of the loss was finally estimated at several million zlotys.
As a result of negotiations during the course of the proceeding seeking compensation under the policy, a settlement satisfactory to both parties to the insurance dispute was reached.
The client was represented by adwokaci Mateusz Kosiorowski (coordinator of the Insurance practice) and Dr Maciej Kiełbowski (partner in the Dispute Resolution & Arbitration practice).