Legal Alert: Georgia Recognizes Defective Construction as an "Occurrence" for Liability Insurance Purposes

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The highest court in Georgia has recently added that jurisdiction to the growing list that considers defective construction, including defects in the work of a general contractor, to be an “occurrence” under the general contractor’s commercial general liability (CGL) insurance policy. The key takeaways are:

- Defective construction can be an “occurrence” under a CGL insurance policy.

- Property damage resulting from an occurrence (caused by defective work or otherwise) must be to other nondefective work or property (or loss of use).

- Business risk exclusions (such as the “Your Work” exclusion) may still apply.

- The entire insuring agreement (occurrence, property damage, and no exclusions) must be met for an insurer to have the obligation to indemnify and defend.

Please see full alert below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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