Mitigation Expense Coverage Claim Scenario

In the design professional context, your insured discovers a substantial design error while engaged in a large design/build project for hospital construction. The insured is vicariously liable for design errors of its subcontractors. The insured triggers language in their insurance policy with XL which allows for remedial claims measures to be undertaken, with XL's prior approval, in the absence of a 3rd party claim. Before the construction phase commences, the insured works with its design subcontractor to fix the design error and thereby mitigating potential claims expenses resulting from a 3rd party claim which would likely include consequential damages for delay, loss of profits, etc.