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Valley Forge seeks court order forcing Zurich to defend contractor
The filing says the dispute involves a $13.5 million sanitary sewer pipe contract in Westminster, Colorado, and seeks Zurich defense and indemnity under an additional insured endorsement.
Valley Forge Insurance Company and Northern Colorado Constructors, Inc. have filed a declaratory judgment action in federal court seeking an order that Zurich American Insurance Company must defend and indemnify NCC as an additional insured, according to a complaint reported by Insurance Business.
The insurers say the underlying coverage dispute is tied to a $13.5 million contract to build about 7,400 feet of sanitary sewer pipe for the City of Westminster, Colorado. In the filing, NCC also points to work carried out through a dewatering subcontractor, Griffin Dewatering LLC, which plaintiffs say was required to name NCC as an additional insured with coverage that would apply as primary insurance.
The suit follows the city of Westminster filing its own claims in Colorado state court, alleging sagging and settlement backfill damage to sections of the pipe. The complaint says the city alleges defective and negligent design and construction, and claims damages well in excess of $1 million, while Valley Forge and NCC allege Griffin's dewatering operations contributed at least in part to the alleged damage.
The plaintiffs say they tendered NCC's defense to Zurich on April 4, 2025, followed up on May 2, 2025, and tendered again on July 17, 2025. They allege Zurich failed to respond to any of the tender letters and seek relief including declaratory judgment, breach of contract, and equitable subrogation and contribution.