Travelers has taken State National Insurance Company to federal court over a construction injury claim linked to a Bronx housing project. The lawsuit, filed on February 24, 2026, in the US District Court for the Southern District of New York, centers on a dispute about insurance coverage and contractual obligations during a construction job.
The case goes back to a New York City Housing Authority (NYCHA) project in the Bronx. In January 2021, Highbridge Owner, LLC and NYCHA signed an agreement with Gilbane to manage repairs and improvements at several buildings, including one at 1381 Franklin Avenue. In February 2022, Gilbane hired Perennial Painting Solutions Corp. to install apartment doors. Perennial’s insurance policy required it to carry commercial general liability coverage that named Gilbane and Highbridge as additional insureds on a primary and non-contributory basis.
In July 2022, a worker employed by Perennial was hurt when a steel door collapsed during removal, injuring his spine and requiring two surgeries. He sued Gilbane and Highbridge, citing negligence and violations of New York’s labor laws. One of those laws, known as the Scaffold Law, holds property owners and general contractors fully responsible for gravity-related injuries on construction sites, which can make claims costly.
Travelers, who provide insurance for Gilbane, stepped in to defend the companies named in the lawsuit. However, they claim that State National—the insurer for Perennial—is actually responsible. State National’s policy includes a broad endorsement that covers any party Perennial agreed in writing to insure, with the policy set to respond first before others.
According to Travelers, they asked State National four times from late 2024 to early 2026 to take on the defense for Gilbane and Highbridge. Each time, State National refused. Now, Travelers wants the court to rule that State National must provide both defense and indemnity coverage, that its insurance is primary, and that Travelers should be reimbursed for all related costs.
This case highlights a common issue in construction insurance. When a subcontractor’s insurance company refuses to fulfill its responsibility to protect other parties named as additional insureds, the financial risk shifts to other insurers. In New York, the Scaffold Law raises the stakes by potentially increasing liability for serious accident claims.
The case is officially titled The Travelers Indemnity Company v. State National Insurance Company, and is moving through the Southern District of New York court system. No decision has been made yet. It shines a spotlight on how challenging insurance matters can become when multiple companies and policies intersect on construction projects.