Tenth Circuit Weighs In On Continuing Saga Of What Construction Defects Are An Occurrence Under Colorado CGL Policies

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As previously reported in Under Construction, in 2009 the Colorado Court of Appeals held in General Security v. Mountain States Mutual that “a claim for damages arising from poor workmanship, standing alone, does not allege an accident that constitutes a covered occurrence.” This holding was controversial in the construction industry because it went beyond traditional commercial general liability policy exclusions of a contractor’s faulty workmanship to bar coverage for all property damage caused by a contractor’s faulty workmanship. Colorado’s General Assembly responded to General Security in 2010 by enacting C.R.S. § 13-20- 808, which requires courts to interpret all insurance policies “currently in existence … broadly in favor of coverage.” Whether C.R.S. § 13-20-808 applied retroactively was left unanswered.

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