Travelers Sues Selective Over Site Injury Defense Costs
Contractors should review indemnity language to confirm which insurer bears the burden during construction litigation.
Updated on Oct. 22, 2026 in Remote Work
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Travelers has filed a federal lawsuit in the Southern District of New York seeking a court declaration that Selective Insurance Company of America must cover defense and indemnification costs for Goldman Sachs. This legal action follows a construction site injury involving a subcontractor at the firm's Manhattan headquarters.
Why it matters
The dispute centers on contractual indemnity and additional insured status, highlighting how carriers and policyholders struggle with shifting liability coverage in multi-party construction contracts. When insurers deny coverage without clear citation, firms face significant financial exposure for defense costs during litigation.
Travelers reports three distinct denials of coverage from Selective since May 2025 following a construction injury at the Goldman Sachs headquarters. The litigation seeks to recover defense costs accrued since Travelers first requested a transfer of the defense in November 2024.
The players
Travelers
A global insurance company providing commercial property and casualty coverage across various industries.
Selective Insurance Company of America
An insurance carrier specializing in commercial and personal insurance products.
Goldman Sachs
A multinational investment bank and financial services corporation with a major office presence in Manhattan.
ARI Products
A New Jersey-based subcontractor involved in construction projects.
The details
The litigation stems from a 2023 accident at the Goldman Sachs office at 200 West Street, involving a construction worker on a fit-out project. Travelers alleges that Selective denied coverage for the subsequent negligence lawsuit without providing specific policy language or contractual justification. As a result, the filing asks the court to validate the status of Goldman Sachs as additional insureds and mandate reimbursement for the mounting defense costs.
Timeline
May 27, 2023: A construction worker falls at the Goldman Sachs headquarters.
November 2024: Travelers formally requests that Selective assume the defense of Goldman Sachs.
May 13, 2025: Selective issues the first of three separate denials of coverage.
February 2026: Goldman Sachs files a third-party complaint against subcontractor ARI Products.
October 20, 2026: Travelers files a declaratory judgment complaint in the Southern District of New York.
Market Landscape
This litigation highlights the ongoing uncertainty surrounding additional insured obligations in complex construction projects. It follows a recurring pattern in New York construction disputes where insurers and policyholders collide over the interpretation of contract-based defense duties.
Operators should review their subcontracts and the specific language of additional insured endorsements to ensure clear defense obligations before projects begin. When a denial is issued, counsel should immediately challenge the insurer to cite the specific policy provisions used for the refusal.
The takeaway
Insurance coverage disputes can drag on for years, creating significant financial uncertainty for all parties involved in a job site. Managers should maintain rigorous documentation of all insurance certificates and correspondence with carriers to ensure they can enforce defense and indemnity requirements effectively.
Further reading
For more on the complexities of site liability and contractor coverage, visit the Remote Work section.
Source note: This article includes information reported by Insurance Business.
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