Contractors get sued. It is one of the realities of working in construction, whether you are a general contractor managing a large commercial project, a specialty subcontractor working on residential builds, or an independent tradesperson running your own operation. A lawsuit can come from a property owner, a general contractor, another subcontractor, an injured worker, or a third party, and the legal and insurance issues involved are rarely simple.
Herrera PLLC defends contractors across Texas in construction disputes, liability claims, and coverage matters. The firm brings a background in construction claims handling and insurance coverage analysis to contractor defense work, which means understanding not just the legal side of these cases but how carriers, adjusters, and opposing counsel approach them.
Construction Disputes Are Different from Other Business Litigation
A contractor facing a lawsuit is not in the same position as a retailer or a service business facing one. Construction disputes involve layered contracts between owners, general contractors, subcontractors, and suppliers. They involve questions about who is responsible for what work, who bears the risk of defects or delays, and how insurance coverage applies across multiple parties. Indemnity agreements, additional insured provisions, and contractual risk transfer clauses all affect who ultimately pays when something goes wrong on a project. Reading those contracts carefully and understanding how Texas law treats them is essential to building an effective defense.
Texas has specific laws governing indemnity agreements in construction contracts, and not every indemnity clause that an owner or general contractor puts in front of a subcontractor to sign is enforceable. Knowing where those limits are can significantly change the exposure picture for a contractor facing a claim.
If You Use Subcontractors, Risk Transfer Requires More Than a Certificate of Insurance
Many general contractors and construction businesses use subcontractors regularly and assume that requiring a certificate of insurance covers the risk. It does not. A certificate of insurance is not a guarantee of coverage. Properly transferring risk to a subcontractor requires contracts with enforceable indemnity language, additional insured endorsements that actually provide the coverage intended, and an understanding of how Texas law limits what you can and cannot require a subcontractor to indemnify you for.
When a claim arises out of a subcontractor’s work and you need that subcontractor’s insurance to respond, whether through an additional insured tender or a contractual indemnity demand, having an attorney with both litigation and insurance experience is the difference between a clean transfer and a coverage fight that leaves your own policy exposed. Getting the contractual language right on the front end and knowing how to enforce it when a claim develops requires someone who understands how carriers evaluate those tenders and what they look for when deciding whether to accept or dispute them.
Defense Provided. Coverage Confirmed? Not Necessarily.
Many contractors carry general liability coverage and assume that when a claim is filed, the carrier will step in and handle everything. Sometimes that happens. But the relationship between a contractor and a carrier-appointed defense attorney is more complicated than it appears, and contractors who do not understand it can find themselves in a difficult position when it matters most.
When a carrier accepts the defense of a claim, it does not always mean coverage is confirmed. Carriers frequently defend claims under a reservation of rights, meaning they are investigating coverage while simultaneously managing the defense. That investigation can go on for months or longer. In some cases, a carrier defends a claim well into litigation, allows key deadlines to pass and strategic decisions to be made, and then withdraws or denies coverage, leaving the contractor exposed at a point where options are limited and the damage from early defense decisions cannot be undone.
Independent counsel exists precisely for this situation. When a carrier is defending under a reservation of rights or coverage is genuinely in question, a contractor’s interests and the carrier’s interests are not the same. Independent counsel represents the contractor exclusively, monitors how the defense is being handled, identifies coverage issues early, and makes sure the contractor is not left holding a problem that the carrier created and then walked away from. Waiting to get independent counsel involved until after a coverage denial arrives is often too late.
Your Coverage Was Denied and Now You Are Defending Alone
Coverage denials in construction claims are common. Carriers raise exclusions for faulty workmanship, business risk, expected or intended damage, and a range of other policy provisions to avoid defending or indemnifying contractors on construction defect and property damage claims. If your carrier has denied coverage and left you to defend a lawsuit on your own, understanding the strength of that denial position is the first step. Not every coverage denial in a construction claim is correct, and pursuing that issue alongside the defense of the underlying lawsuit is sometimes the right move.
Contract Disputes with Owners, GCs, and Subs
Not every construction dispute is a personal injury or defect claim. Contractors frequently face disputes over payment, change orders, project scope, delays, and termination. Whether you are a general contractor dealing with a property owner who refuses to pay, a subcontractor who was improperly terminated, or a supplier whose invoices are being disputed, these are civil matters with real financial consequences. Resolving them efficiently requires an attorney who understands how construction contracts are structured and how these disputes typically develop.
Getting Ahead of a Dispute Before It Becomes a Lawsuit
Construction disputes rarely appear without warning. A pattern of complaints from an owner, a demand letter from a general contractor, a lien filed on a project, or notice of a claim from an injured worker are all signals that legal exposure is developing. Engaging an attorney at that stage, before a lawsuit is filed, allows for a realistic assessment of the situation, preservation of critical documentation, and the opportunity to pursue resolution before the costs and disruption of formal litigation begin.
Contact Herrera PLLC
Herrera PLLC defends contractors and construction businesses across the Houston area and statewide. Whether you are already named in a lawsuit, dealing with a coverage denial, facing a contract dispute, or trying to get ahead of a situation before it escalates, contact the firm today for a free, confidential consultation.
