$11 Million Verdict in Injury Case Spurs Coverage Dispute

A Texas construction company, BMH As-Built USA of Texas Inc., is facing an $11 million jury verdict in a personal injury lawsuit. The lawsuit stems from a 2018 incident in which Caleb Queen, a construction worker, was seriously injured at a condominium construction site managed by BMH. According to court filings, another worker threw debris from a roof, striking Queen in the head and causing severe injuries to his head, neck, shoulder, and arm. Queen subsequently sued for negligence, seeking at least $1 million in damages.

The Coverage Dispute

BMH held a commercial general liability policy with Admiral Insurance Co., which initially provided the company with a defense under a reservation of rights. However, following the jury’s verdict, Admiral filed an amended complaint in Texas federal court, asserting that it has no obligation to cover the damages.

Admiral argues that the policy explicitly excludes coverage for residential construction activities, which applies to the underlying incident. Additionally, the insurer cites the policy’s workers’ compensation and employer’s liability exclusions as further grounds for denying coverage. Another key exclusion, the condominium conversion exclusion, precludes coverage for liability arising from the construction, repair, or modification of buildings converted into condominiums.

Previous Legal Proceedings

Admiral had previously sued BMH in May 2023, seeking a declaration that it had no duty to indemnify the company. However, the court dismissed the case without prejudice, stating that it could not make a ruling on indemnification until the underlying personal injury case was resolved. Now that the jury has issued its verdict, Admiral is renewing its effort to deny coverage for the judgment.

What’s Next?

The case will now proceed in federal court, where BMH is expected to challenge Admiral’s denial of coverage. If the court upholds Admiral’s exclusions, BMH may be forced to cover the full $11 million verdict out of pocket or seek alternative avenues for indemnification.

Law Firms Involved

Admiral Insurance Co. is represented by Wilkins PLLC. Counsel information for BMH As-Built USA of Texas Inc. was not immediately available.

The case is Admiral Insurance Co. v. BMH As-Built USA of Texas Inc., case number 3:25-cv-00485, in the U.S. District Court for the Northern District of Texas