Construction site incident during tram line extension

Background 

Despite the irregularities during construction, the operator put the tram lines into service. But the problems quickly increased (the area of the land subsidence expanded), which progressively disrupted the operation of the trams. The contractors’ all risks (CAR) insurer of the project owner immediately assigned Stelliant Loss Adjusting to the case. The main issue was to determine whether the circumstances of the claim fell within the remit of the CAR policy. 

How Stelliant proceeded

Stelliant Loss Adjusting quickly dispatched its geo-technical loss adjuster to the scene. He noted the damage, carried out the necessary investigation to determine the causes and studied the complex history of the case. The lack of corrective measures during the works and at the time of handover of the works raised questions.  

The technical assessment showed there was no causal link between the works carried out and the alleged construction site incident. The irregularities detected during the works but which remained unreported did not fall within the hazards covered by the CAR policy but was a matter of contract. The loss adjuster being a specialist in public works showed the CAR insurer that the claim was not covered under the insurance policy.  

The aggrieved policyholder disputed the insurer’s position and initiated a legal action. Stelliant Loss Adjusting provided the insurer with legal assistance during the proceedings until the case was finally closed. The technical loss adjuster carried out a full analysis of all claims and documents throughout the procedure. 

This loss adjustment assignment ended in a fair application of the insurance coverage: the insurer did not have to indemnify a construction site incident that was not covered by its policy.  

What if the circumstances of the claim had been covered by the CAR policy? In such a case,  

• Stelliant Loss Adjusting would have called on the expertise of the Stelliant Group teams.  
• The technical loss adjuster would have taken provisional measures from the report of the claim, identified the causes and determined who was liable.  
• The project owner, Géosynthèse, would have suggested remedial solutions.  
• The quantity surveyor would have checked the costs of the damage as accurately as possible and the financial viability of the proposed solutions.  

Whatever the case, Stelliant Loss Adjusting will propose a single contact person who has access to all the necessary expertise for facilitating discussions between the many stakeholders and enabling a quick and fair resolution.