NORTH END BOISE, Idaho — Nearly two years after a hangar collapse at Jackson Jet Center killed three construction workers, the legal fallout from the incident is still unfolding in federal court.
A hearing was held Tuesday as Big D Builders and American Zurich Insurance Company argued over whether insurance should cover part of the damage caused by the collapse.
RELATED: Victims' families reach settlement in Boise hangar collapse case
The collapse occurred in January 2024 while a new aircraft hangar was under construction at the Jackson Jet Center near the Boise Airport. Three people were killed when part of the structure failed, prompting multiple investigations, lawsuits and scrutiny.
One of those legal disputes now centers on insurance coverage.
WATCH: A federal judge weighs an insurance coverage dispute tied to the deadly Boise Airport hangar collapse
Big D Builders, the general contractor on the hangar project, is seeking about $1.16 million from Zurich, alleging the insurer wrongfully denied coverage for four columns and foundational footings that failed during the collapse.
In court, Big D argued the project was a single, stand-alone hangar, built under a construction contract valued at more than $6.2 million, and that the columns and footings were always part of the structure – not an addition to an existing building.
Big D also pointed to the builders-risk insurance policy it purchased, arguing Zurich calculated premiums based on the total project value, including foundation work, and therefore should not exclude those same elements from coverage.
Zurich countered that the policy only applies to work completed during the policy period, and does not extend to portions of the project installed before coverage began.
Much of the hearing focused on the interpretation of specific contract language, including phrases such as “has been installed,” “will be installed,” and “existing inventory.” At one point, the judge emphasized that “words matter” and questioned how different parts of the same construction project could be treated differently under the policy.
The insurance dispute comes just weeks after confidential settlements were reached with the victims’ families in the wrongful-death cases stemming from the collapse. The settlement amounts have not been disclosed, and no public statements have been made by Big D or other parties linking those settlements to the insurance dispute.
The judge said he will issue a written decision after reviewing additional case law.
RELATED: OSHA lawsuit against Inland Crane dismissed following deadly Boise hangar collapse
Meanwhile, Big D is also scheduled to appear at a federal OSHA hearing in May in Denver, after an investigation into the collapse.
