Insurer refuses to pay construction company in UI Children’s Hospital faulty window case

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Lang
11/18/25

The insurer for a Missouri-based construction company that was found at fault for installing defective windows at the University of Iowa Stead Family Children’s Hospital is now refusing to cover the damages.

The Cedar Rapids Gazette reports a complaint filed by American Guarantee and Liability Insurance Company of Illinois in U.S. District Court on October 10th claims The Travelers has no obligation to pay because the situation does not fall under the company’s coverage agreement. American Guarantee and Liability is the insurer for Missouri-based Cupples International Inc.

The University sued Cupples and Minnesota-based Knutson Construction in 2022, claiming that the two companies installed defective windows that didn’t have insulated glass. UI Health Care installed protections to prevent glass from falling on patients or staff in case the windows broke. Last July, a judge awarded the UI a $49.5 million arbitration award in the case.

A link to the full Gazette article can be found here.