In South Capitol Bridgebuilders v. Lexington Insurance Company (SCB), Goodman Law Group | Chicago (GLG) secured a major win for policyholders in the first published decision in the world to address the meaning of the LEG3 endorsement to builders risk insurance policies. This 2023 decision by the U.S. District Court for the District of Columbia caused an earthquake in the world of builders risk insurance coverage that continues to cause aftershocks, including an October 2025 article published in Law360 describing the outcome of the case as “a nuclear bomb in the insurance world” as the industry endeavors to adjust in response.
The LEG3 endorsement, as interpreted in SCB, modifies exclusions for workmanship, materials, and design defects commonly found in builders risk coverage, limiting those exclusions to the cost of improvements. This modification, as interpreted in SCB, results in a substantial expansion of the insurance coverage provided. But despite SCB, insurers continue to try to evade their coverage obligations in builders risk policies that include LEG3 and other related “Cost of Making Good” endorsements. Thanks to GLG’s record of success with substantial builders risk claims, David Goodman is a go-to resource for large construction firms, owners and developers of major construction projects, risk managers, brokers, and attorneys from around the world who seek his help developing strategies to support coverage under LEG3 and Cost of Making Good claims. David also continues to be in high demand as a speaker, having presented in the past 12 months on LEG3 at events in La Jolla and Santa Fe, and at an insurance coverage symposium in Copenhagen, Denmark.
GLG’s argument that secured the win for policyholders in SCB was subsequently accepted by a federal court in Florida. This same aggressive approach is at the core of how we approach all builders risk insurance coverage cases, as well as our other work for policyholders. Specifically, we assess the policy to find the coverage for which the insured negotiated and dissect the endorsements to find the needle of coverage within the haystack of the policy.
If you have questions about builders risk coverage or other commercial insurance-related concerns, please contact David Goodman at dg@glgchicago.com or 312 626 1890.