In today’s construction US news, learn that American Empire has declined to defend or insure MDG Design & Construction LLC, while U.S. Specialty claims it is covering the costs of a slip-and-fall accident that occurred in a Bronx parking garage. On the other hand, according to data provided by RentCafe.com, new apartment buildings in Chicago are expected to plunge 60.4% to 3,756 units compared with 2024, the greatest decline of any major U.S. metro. Lastly, the reconstruction of US 19 in Pinellas County, which extends north of State Road 580, is still ongoing. Businesses and drivers alike are experiencing delays due to the continuous road construction.
U.S. Speciality Insurance Challenges Rival Over Bronx Construction Claim
Original Source: U.S. Specialty Insurance challenges rival over Bronx construction claim
A new New York lawsuit between two insurers is over who pays for construction site accidents.
U.S. Specialty Insurance Company sued American Empire Surplus Lines Insurance Company in the Southern District of New York on September 8, 2025. The issue? U.S. Specialty alleges it is paying for a slip-and-fall accident at a parking garage in the Bronx, while American Empire has not defended or insured MDG Design & Construction LLC.
This is the setup: The parking garage’s general contractor was MDG, and AMB Construction, Inc. repaired the roof. Natal sued MDG for carelessness after a slip-and-fall. The complaint states that American Empire insured MDG as well as AMB. Insurance provider U.S. Specialty says it frequently offered to defend and indemnify MDG to American Empire but received no response.
Insurance professionals know the answer: Which insurer defends and indemnifies a contractor identified as an additional insured on a subcontractor’s policy? U.S. Specialty claims the American Empire’s policy should have responded, especially since AMB was repairing roofs. The case cites MDG’s construction manager’s deposition verifying AMB’s garage work.
U.S. Specialty’s attorneys issued American Empire a new tender letter on May 30, 2025, seeking that it defend and indemnify MDG in the personal injury action. The complaint states that American Empire failed to provide a defense, which resulted in U.S. Specialty having to cover the costs and manage the situation.
U.S. Specialty is seeking a declaratory judgment that MDG is an extra insured under the American Empire policy in the underlying action. The insurer wants a ruling that American Empire must defend and indemnify MDG on a primary and non-contributory basis and that U.S. Specialty can leave the defense. U.S. Specialty claims damages for all MDG defense costs and interest.
The case disputes the interpretation and applicability of the additional insured endorsement and American Empire’s policy responsibilities without the entire policy language.
The charges in this freshly filed complaint are unproven, so American Empire can react. Insurance professionals should grasp additional insured clauses and the possibility of insurer disputes over defense and indemnification duties in construction claims.
This case may affect future coverage conflicts. When an accident occurs in a building project with numerous insurance policies, who pays?
Chicago Leads U.S. Metros in Apartment Construction Drop
Original Source: Chicago leads U.S. metros in drop in new apartment construction
Chicago will have the biggest reduction in new apartment buildings this year, falling 60.4% to 3,756 units compared to 2024, according to RentCafe.com.
Due to increased labor and material prices, insurance charges, and tougher lending rules, local developers are slowing pace. Many projects scheduled to open this year received approval in 2021 and 2022, whereas fewer started construction in 2023 and 2024, contributing to the significant reduction.
Chicago’s fall contrasts with significant apartment construction nationwide. In 2025, 506,353 units are expected nationwide. Despite falling below last year’s record, this amount is significantly above the annual averages since 2015, indicating continued rental housing demand.
Chicago is not alone in a sharp decline. To 1,664 units, new apartments in Madison, Wisconsin, fell 59.3%, the second largest. Higher interest rates and more luxury residences may slow down college town development.
Despite a slowdown in several northern metropolitan areas, the South continues to lead in apartment construction. Due to population growth, job growth, and business-friendly building policies, southern states will account for almost half of new units this year. Texas metros Dallas, Austin, and Houston are leading the development boom.
New York beat Dallas by more than 1,000 units as the nation’s largest apartment constructor, with Manhattan and Brooklyn seeing a boom. Austin, Texas, and Naples, Florida, are experiencing rapid growth, with completions nearly quadrupling in 2025.
“Southern metros typically offer streamlined approval processes and fewer regulatory hurdles, making multifamily projects easier to market,” said Yardi Matrix senior analyst and manager of business intelligence Doug Ressler. “Rising home prices and a lack of affordable for-sale housing are pushing more residents toward rentals. Single-family ownership is out of reach for many households, driving rental housing demand.
Developers must meet rising rental demand while reacting to higher prices and regulatory issues in Chicago.
Pinellas Businesses and Drivers Navigate Us 19 Construction
Original Source: Businesses and drivers navigate through US 19 construction in Pinellas
Pinellas County’s U.S. 19 is undergoing reconstruction north of State Road 580.
However, roadwork is causing problems for numerous businesses and drivers on that stretch of road.
Ean Neville founded Bonsai Beverage Company in Clearwater two years ago, fulfilling a lifelong dream: owning a coffee business near his hometown.
“Initially, it was stressful. Neville was unsure about what to expect.
That’s because U.S. 19 construction began two weeks before his grand opening.
As construction increased, it got worse. “People avoided this area at all costs,” Neville said.
He says the first few months were difficult.
Project rendering FDOT
Project rendering FDOT
After nearly two years, he and his clients have grown accustomed to the situation.
However, contractors closed the right turn lane from SR-580 to Curlew Road, making it harder to enter his and other businesses. It also increased rush-hour traffic.
Simply risky. These enterprises are sought after. People are flying up from behind them at 80 mph. “I’m shocked there aren’t more accidents,” Neville said.
The FDOT project will turn that stretch of U.S. 19 into a “controlled access roadway,” like south of SR-580.
U.S. 19’s main lanes will rise. Frontage roads will connect companies and residences along the side.
The project aims to enhance traffic flow in a densely populated area.
Neville hopes it will boost his business when finished.
“It will be wonderful to have turnarounds and frontage roads when it’s finished,” Neville remarked.
The project won’t finish until 2029, so Neville must be patient.
US 19 is under construction from SR-580 to County Road 39, north of Curlew Road. The project will provide a pedestrian overpass and underpass.
The FDOT says construction is on time. Drivers should also look out for work personnel, especially at nighttime.
Summary of today’s construction news
To sum it up, on May 30, 2025, the legal team at U.S. Specialty submits a new tender in order to defend and indemnify MDG in the personal injury lawsuit that is currently underway. The case states that American Empire failed to protect itself, leaving U.S. Specialty to pay and solve the issue. In the litigation that is the basis for this case, U.S. Specialty is seeking a declaratory judgment that states that MDG is an additional insured under the American Empire policy. The insurance company is demanding that a ruling be made that would allow American Empire to withdraw its defense and appoint MDG as the primary and non-contributory indemnitor. U.S. Specialty requires reimbursement for the entire amount of the MDG defense, which includes all associated interest.
On the other hand, with a significant increase in building in both Manhattan and Brooklyn, New York continues to be the leading apartment builder in the country, surpassing Dallas by more than one thousand units. In 2025, Austin, Texas, will be an example of strong expansion at the municipal level, while Naples, Florida, will have its completions nearly treble. While the city of Chicago deals with increased expenses and regulatory constraints, developers are confronted with the combined problem of satisfying the robust demand for rentals while adjusting to a less advantageous construction environment.
Finally, they plan to elevate the primary lanes of U.S. Route 19. We will utilize the frontage roads to access the nearby businesses and neighborhoods. The concept involves increasing the flow of traffic in a section of the road that has a high volume of traffic. Curlew Road is located immediately south of County Road 39, which is where the construction on US 19 begins, at SR-580. Once completed, the project will also have a new flyover and underpass for pedestrians to use. The Florida Department of Transportation reports that the construction is moving forward as planned. Furthermore, they request that drivers remain vigilant for the presence of work personnel, particularly during the hours of darkness.
