Illinois Court Denied Insurance Coverage for Jobsite Death
Construction firms face total liability when employee injury exclusions in insurance policies are triggered by workplace accidents.
Updated on Oct. 2, 2026 in Construction
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An Illinois appeals court ruled that Mt. Hawley Insurance Co. is not required to cover a $2.65 million judgment following a fatal 2017 construction site accident in Waukegan. The court found that an employee injury exclusion applied, as the deceased worker was classified as an employee.
Why it matters
This ruling highlights the high financial risk for construction firms that fail to maintain adequate workers compensation coverage, as general liability policies often exclude such claims. Operators must ensure their employment classifications and insurance coverages are perfectly aligned to avoid catastrophic out-of-pocket liabilities.
The estate of a carpenter who fell 20 feet sought coverage for a $2.65 million judgment against Stone Development Group Inc. The insurer covered $250,000 of that total before the court determined an employee injury exclusion effectively barred the remaining claim.
The players
Stone Development Group Inc.
A construction company that faced a multimillion-dollar judgment after failing to maintain mandatory workers compensation coverage.
Mt. Hawley Insurance Co.
An insurance provider that successfully invoked policy exclusions to limit its liability in a fatal workplace accident case.
Ramiro Godinez
The carpenter who died after a fall at a Waukegan construction site.
The details
The worker fell from a plywood box elevated by a forklift during a project in Waukegan. The Illinois Appellate Court relied on factual findings from an OSHA investigation, which identified the carpenter as an employee of Stone Development Group. Because the company lacked workers compensation insurance at the time, the court affirmed that the general liability policy's exclusion clause prevented the insurer from bearing the financial burden of the loss.
Timeline
September 19, 2017: Ramiro Godinez fell at a construction site in Waukegan.
September 25, 2017: Ramiro Godinez died following the incident.
September 30, 2026: The Illinois Appellate Court issued the final ruling regarding coverage.
Market Landscape
This decision follows established standards set by Illinois workers compensation requirements regarding contractor insurance obligations. The ruling reinforces the industry trend of strict judicial adherence to policy exclusion language when companies fail to secure basic regulatory coverage.
Operators must conduct a thorough audit of their insurance policies to ensure there is no gap between general liability and workers compensation coverage. Failing to verify the status of employee classifications can leave a business personally liable for multimillion-dollar legal judgments.
The takeaway
Insurance exclusions are strictly interpreted by courts, meaning that a lack of workers compensation coverage often results in total liability for employers. Review your current insurance portfolio with a licensed broker to ensure that all personnel, regardless of task or role, are explicitly covered for workplace accidents.
Further reading
For more on managing liability risks, explore our section on Construction.
Source note: This article includes information reported by Business Insurance.
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