Nautilus Insurance is seeking a federal court’s ruling to avoid covering a contractor in a significant construction injury lawsuit. The case involves a $1 million claim stemming from an incident where a worker was injured on a job site managed by SG Home Builders.
On July 29, 2025, Nautilus filed a complaint in the U.S. District Court for the Northern District of Illinois. The insurance company wants the court to declare that it has no obligation to defend or indemnify Seibert Group 1, LLC, commonly known as SG Home Builders, in a personal injury lawsuit currently pending in Cook County, Illinois. The dispute centers around a common clause in commercial general liability policies known as the "Injury to Workers Exclusion."
The lawsuit was initiated by John Kearns, a concrete delivery driver for Welsh Ready Mix. Kearns claims he was injured on June 13, 2023, while delivering concrete to a residential construction site in Downers Grove, Illinois. He alleges that he stepped into a hidden hazard at the site, which was under the management of SG Home Builders. Kearns is suing SG and several other contractors for negligence and premises liability, seeking damages exceeding $75,000.
SG Home Builders had a commercial general liability policy with Nautilus that provided coverage limits of $1 million per occurrence and $2 million in total. After Kearns filed his lawsuit, SG requested that Nautilus cover the claim and provide legal defense.
However, Nautilus argues that it should not have to pay. The insurance company’s complaint references the "Injury to Workers Exclusion," which is a standard part of many general liability policies. This exclusion denies coverage for injuries to employees or contractors of the insured if the injury occurs during the course of their employment or while performing duties related to the insured’s business.
According to Nautilus, Kearns was acting as a subcontractor for SG’s contractor at the time of his injury, which means the exclusion applies. The insurer is asking the court to confirm that it is not responsible for any judgment or settlement related to this case.
It’s important to note that this is just Nautilus’s position, and a final ruling has yet to be made. The court will need to assess whether the exclusion is applicable based on the specific facts of the case and the wording of the policy. Currently, the case is still in the complaint stage, and the outcome remains uncertain.
For those in the insurance industry, especially those dealing with construction clients, this case highlights the importance of policy language. Worker exclusions are common in general liability insurance, but the details surrounding each claim, including who was injured and under what circumstances, can significantly impact the outcome. The resolution of this lawsuit could influence how insurers draft and enforce worker exclusions in the future and how contractors manage risk on their job sites.