Case Study : Hunt Construction Group Inc.

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Case Number and Title United States Court of Appeals Seventh Circuit, Case Number 06-4335 Hunt Construction Group Inc. vs. Allianz Global Risks U.S. Insurance Company
Parties Involved
• Hunt Construction Group Inc.; Plaintiff-Appellant
• Allianz Global Risks U.S. Insurance Company; Defendant-Appellee
• Seventh Circuit of Appeals Presiding Judges: o Richard A. Posner o Joel M. Flaum o Daniel A. Manion
Project Specifications (Name, Type, Contract Amount, Location) Name: Edward H. McNamara Midfield Terminal (Northwest WorldGateway) Type: Airport Main Terminal Contract Value: $420M Location: Detroit, Michigan
Place and Date of Case Place: Detroit, Michigan Date Decided: October 1st, 2007
The Plaintiff, Hunt Construction
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The insurance policy issued to hunt did cover fire damage, as most builders risk policies due; however, it also covered almost every other kind of damage that a construction company might encounter as well, and Hunts damages were mostly caused due to water damage. In order for Allianz to call the builders risk policy a fire insurance policy, and subject the policy to have the Plaintiff seek indemnification that was not caused by fire or means covered in a “fire insurance policy”, there are several ramifications involved.
Fire is one of the risks of a construction project against which Allianz’s policy insures; yet it is only one, and given the wide range coverage of the policy, it seemed odd to the presiding judges to classify it as a fire risk insurance policy. A fire insurance policy is subjected to 19 separate requirements, and until 1990, Michigan legislature, rather than trying to define “fire insurance policy”, provided that a “standard fire policy” (with all 19 mandatory minimum provisions) would not be required for a variety of types of insurance. The structure of this Michigan statute implied any form of insurance that was not exempt was a “standard fire policy”, including a builders risk policy, and so the 19 mandatory provisions would have to have been included when indemnity was sought after. However, this legislature was repealed in 1990, well before Allianz issued the
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