Microsoft Sued JLL Over Insurance Dispute
The firm alleges the project manager failed to provide contracted liability coverage during a major office build-out.
Updated on Oct. 13, 2026 in Remote Work
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Microsoft filed a lawsuit against JLL in New York County Supreme Court, claiming the firm failed to add them as an insured party for a construction project. The legal action follows an accident involving a construction worker at the 122 Fifth Avenue site.
Why it matters
The dispute centers on contractual indemnification, highlighting the financial risks operators face when third-party managers fail to execute agreed-upon insurance coverage. Mismanagement of these policy requirements can leave companies directly exposed to personal injury litigation costs.
The lawsuit concerns a $10 million liability insurance policy for a 150,000-square-foot office project. This redevelopment carried a total budget of $100 million.
The players
Microsoft
A global technology company that builds and manages significant commercial office footprints.
JLL
A global commercial real estate services firm that provides property management and project development services.
Anyello Frayind
The construction worker who initiated the personal injury litigation against Microsoft and other entities.
The details
Microsoft alleges JLL, which acted as the project manager for the office build-out, failed to name them as an additional insured party on a $10 million liability policy. This oversight came to light after a construction worker, Anyello Frayind, alleged he was struck by a forklift at the site in March 2023. Frayind subsequently sued, adding Microsoft as a defendant in 2025, which prompted Microsoft to seek legal indemnification from JLL.
Timeline
March 2023: Construction worker injured by forklift
July 2023: Microsoft moved into 122 Fifth Avenue
2024: Frayind filed initial lawsuit
June 2025: Frayind added Microsoft to lawsuit
October 9, 2026: Microsoft filed suit against JLL
Market Landscape
This dispute highlights the critical importance of additional insured endorsements in commercial construction contracts. It follows a standard pattern of risk transfer where owners seek to shift liability to the project manager or general contractor.
Owners must verify their status as an additional insured on all vendor policies before a project commences. Audit your current construction contracts to confirm that liability coverage specifically names your entity as requested.
The takeaway
Operational oversight regarding insurance certificates can create massive legal vulnerabilities during construction projects. Regularly reconcile your insurance requirements with your project managers to ensure coverage is verified and active.
Further reading
For more on managing facility operations, visit Remote Work.
Source note: This article includes information reported by Bisnow.
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