Let’s begin by sharing the results of efforts to obtain participation and contribution from other carriers toward settlement. For purposes of these examples, assume that the underlying tort claim is settled.

The first example involves a typical situation in which your policyholder is a general contractor and builder. Your policyholder contracted with a claimant to construct a custom home. Geological testing is not performed and the home is built on top of an underground spring and, in due course, structural damages become manifest.

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