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Contractor found liable for $1.17 million for inflated repair costs - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Contractor found liable for $1.17 million for inflated repair costs by Richard Sine Claims Disputes , Property May 27, 2026 A Denver jury delivered a $1.17 million verdict against a building contractor accused of conspiring with an appraiser to inflate the cost of repairs to a Denver church. Contractor Skyyguard, which also operates in California and Texas, may ultimately be liable for more than $2 million, as insurer Church Mutual can seek repayment for the $1.1 million it has paid out on the claim, said Jeremy Moseley, a Denver-based partner at Spencer Fane, who represented the insurer and later the church in the case. Policyholders should “be aware that there are contractors, public adjusters, appraisers out there who are gaming the system,” Mr. Moseley. Skyyguard co-founder Chase P. Baron said he planned to appeal. “Throughout trial, Skyyguard maintained that the restoration work was legitimately performed, that substantial project costs were incurred and paid, and that all amounts paid were approved through the insurance appraisal process,” Mr. Baron said in a statement. The jury last week found that Skyyguard had “acted in a fraudulent, malicious, or willful and wanton manner” in interfering with Church Mutual’s contract with the Calvary Baptist Church of Denver, according to the verdict form. It awarded punitive damages to the church and the insurer. The case was The Calvary Baptist Church of Denver and Church Mutual Insurance Co. v. Skyyguard Corp. The case began as a bad-faith lawsuit filed by Calvary Baptist against Church Mutual. An appraisal process produced a damage assessment of about $1.4 million, and Church Mutual paid over $1.1 million before refusing to pay code requirements coverage. During discovery, Mr. Moseley said he and his team found that Skyyguard had provided the church’s appraiser with an inflated estimate to use during the appraisal process. Ultimately Skyyguard paid about $760,000 to a subcontractor to repair the roof, he said. The appraiser charged $75,000 for his services while the insurer’s appraiser charged only $10,000. After Mr. Moseley shared this information with the church, it settled with the insurer, paying $50,000, and then joined the insurer in suing the contractor. Related News Lawmakers send contractor coverage bill to governor May 27, 2026 AI goes pro se, courts go ‘oh no’ May 27, 2026 Transactional risk claims jump 34%: Marsh May 27, 2026 Oakbridge buys Florida-based agency May 27, 2026 Property cat rates fall at mid-year renewals May 27, 2026 Cyberattacks fuel Asia coverage demand May 27, 2026 Insurers see limited impact from Middle East conflict: Report May 27, 2026 Liberty Mutual takes ups stake in JV May 27, 2026 Geopolitics reshapes shipping risks May 27, 2026 Facebook-f X-twitter Linkedin-in Business Insurance is a singular, authoritative news and information source for executives focused upon risk management, risk transfer and risk financing. 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