Liberty Mutual has reached a settlement agreement with Travelers Insurance in a legal dispute involving coverage responsibilities after a serious injury on a New York construction site. The case centers around a lawsuit filed by a man who fell down an elevator shaft during a building renovation.

In a filing made on May 28 in the U.S. District Court for Connecticut, Liberty Mutual notified the court that the parties had reached an agreement and anticipated finalizing the settlement within 60 days. Liberty Mutual also stated its intention to withdraw the suit against Travelers once the settlement is finalized.

The lawsuit originated from Liberty Mutual’s attempt to compel Travelers and its affiliated companies to provide defense and indemnification for Suffolk Construction Co., Inc., which was being sued by Oscar Marin, an NYU Hospital facilities engineer who was seriously injured during a project on city-owned property in New York used by the hospital.

Suffolk had been hired by the City of New York to complete renovation work on the site and had subcontracted plumbing work to Maccarone Plumbing, Inc. According to court filings, on March 12, 2020, two Maccarone employees asked Marin to open a door to an unused elevator shaft to assess whether piping could be run through that space. The door was located in the building’s subbasement. Marin claims that when he opened the door, he fell into the shaft and sustained significant injuries.

Marin filed a personal injury lawsuit on February 24, 2021, naming both Suffolk and Maccarone as defendants.

After receiving the lawsuit, Suffolk turned to its insurer, Liberty Mutual, for legal defense and indemnification. Liberty Mutual, which provided Suffolk with commercial general liability coverage, agreed to take on those responsibilities. As of February 27, 2025 — the date Liberty Mutual filed its lawsuit against Travelers — it had spent over $75,000 on Suffolk’s legal defense related to Marin’s claim.

Liberty Mutual argued, however, that Travelers was the insurer that should be covering Suffolk’s defense and potential liabilities. In its court filings, Liberty Mutual cited the subcontract agreement between Suffolk and Maccarone, which contained a clause requiring Maccarone to “defend, indemnify, and save harmless” Suffolk from claims arising out of the subcontracted work, except in cases of Suffolk’s sole negligence.

According to Liberty Mutual, Maccarone provided proof of insurance coverage in accordance with the contract, listing a Travelers Property Casualty Co. policy and an umbrella policy from Travelers Indemnity Insurance Co. Both policies allegedly named Suffolk as an additional insured.

On February 22, 2022, Liberty Mutual formally requested that Travelers assume the defense and indemnity of Suffolk in the Marin matter, citing Suffolk’s status as both an additional insured and a contractual indemnitee. However, Travelers responded on April 13, 2022, rejecting the request and denying any coverage obligations.

Liberty Mutual sent follow-up letters on September 27 and October 22, 2024, urging Travelers to reconsider its position. Travelers did not respond to the requests, nor did it take over Suffolk’s defense or reimburse Liberty Mutual for any legal expenses.

Liberty Mutual then filed suit seeking a court ruling affirming that Suffolk qualifies as an additional insured under Travelers’ policies and is entitled to defense and indemnity coverage up to the policy limits. Liberty Mutual also requested reimbursement for the costs it had already incurred in defending Suffolk.

With the recent notice of settlement, the long-running insurance dispute appears to be nearing its conclusion.