News & Analysis as of

PA Supreme Court Grants Important Victory for Insurers Regarding CGL Coverage for Progressive Property Damage

In a comprehensive and sweeping opinion, the Pennsylvania Supreme Court affirmed several key principles of commercial general liability (CGL) policy interpretation in Penn National v. St. John, decided on December 15, 2014....more

Tenth Circuit: Property Damage Surrounding Defective Windows Is an “Occurrence” Because Damage Is Unexpected from Insured’s...

In Cincinnati Insurance Company v. AMSCO Windows, No. 13-4155 (10th Cir. November 26, 2014), Cincinnati insured AMSCO, which manufactures windows for use in homes and sells the windows to distributors. Certain AMSCO windows...more

Full Credit Bid Causes Loss of Insurance Proceeds

A recent case serves as a reminder of one of many risks posed by making a full credit bid at a foreclosure sale: the lender may lose the right to recover insurance proceeds for pre-foreclosure damage to the foreclosed...more

Indiana Court Holds Auto Exclusion Applicable to Forklift-Related Injury

In its recent decision in National Am. Ins. Co. v. Harleysville Lake State Ins. Co., 2014 U.S. Dist. LEXIS 160593 (S.D. Ind. Nov. 14, 2014), the United States District Court for the Southern District of Indiana had occasion...more

Regional Steel: the continuing effort to avoid the cost of correcting the insured’s work

Casualty insurers normally do not expect to pay the cost of their insureds simply doing a good job. Insurers typically view their contracts as assuming the risk of delineated consequences – damages – if the insured’s work...more

No CGL Coverage for Faulty Workmanship Under Pennsylvania Law

In State Farm Fire & Casualty Co. v. McDermott, 2014 WL 5285335 (E.D. Pa. Oct. 15, 2014), a federal court recently held that an insurer has no duty to defend or indemnify its insured against an underlying construction defect...more

Testing Texas CGL Coverage For 3rd Party Products

On Sept. 19, the Fifth Circuit certified four questions to the Texas Supreme Court regarding coverage under a commercial general liability policy in U.S. Metals Incorporated v. Liberty Mutual Group Incorporated, No. 13-20433,...more

Pennsylvania Supreme Court Declines To Review Pro-Policyholder Decision; Contrary Arguments Possible

For years, product manufacturers relied on commercial general liability policies to defend and indemnify them for product liability claims. Although these policies may exclude coverage for pure economic loss or for damage to...more

Pennsylvania Supreme Court Denies Review of Faulty Workmanship Decision

Last week, the Pennsylvania Supreme Court let stand the appellate decision in Indalex, Inc. v. National Union Fire Insurance Co. of Pittsburgh, Pa., which held that mold related health problems and property damage allegedly...more

Nebraska Appellate Court Gets Down to Earth to Hold That Faulty Workmanship Standing Alone Is Not An “Occurrence”

The insurance and construction industries have disagreed about coverage claims involving faulty workmanship for many years. Contractors believe their CGL insurance policies should always cover property damage caused by...more

Policy Observer - September 2014

All Sums or Pro Rata: Did You Get the Coverage You Bought? In recent decades, liabilities stemming from long-term bodily injury or property damage—as from exposure to asbestos or contamination of the environment—have...more

Alabama Joins Recent Trend of States Finding Defective Work May Be Covered Under a Commercial General Liability Policy

The Supreme Court of Alabama recently held in Owners Ins. Co. v. Jim Carr Homebuilder, LLC that a contractor’s commercial general liability (“CGL”) policy provided coverage for property damage caused by the defective work of...more

Alabama Supreme Court Reverses Course, Finds Insurance Coverage for Faulty Workmanship Claims

Companies such as homebuilders, construction companies and contractors face significant financial risk from bodily injury and property damage claims arising from allegedly faulty workmanship or construction defects. Although...more

Insurance Coverage – Duty to Defend – Construction Defects

Regional Steel Corporation v. Liberty Surplus Insurance Corporation - Court of Appeal, Second Appellate District (June 13, 2014) - There has been a split of decisions in California as to whether incorporation of...more

Policyholders Must Be Vigilant for Construction Defect Exclusions, Including For Impaired Property to Combat Insurance Companies’...

Continuing the most recent trend in coverage litigation, insurance companies are increasingly engaging “Big Law” firms to develop legal arguments for narrower interpretation of their policies when troublesome claims threaten...more

The Alabama Supreme Court Broadens the Definition of “Occurrence” in a General Contractor’s Commercial General Liability Policy in...

On March 28, 2014, the Alabama Supreme Court withdrew its September 20, 2013 opinion and substituted a new decision in Owners Ins. Co. v. Jim Carr Homebuilder, LLC, 2014 WL 1270629 (Ala. Mar. 28, 2013). In its new decision,...more

Primer On Underwriting Insurance Risks In Argentina

Latin America presents excellent opportunities for the global (re)insurance industry. But, there are a number of important considerations for insurance and reinsurance companies underwriting risks in the region. This article...more

California Court Finds No Coverage For Feng Shui Services And Lost Business Income Incurred More Than 12 Months After Date Of Loss

On May 8, 2014, a California federal court in Patel v. American Economy Ins. Co., 2014 U.S. Dist. LEXIS 63935 (N.D. Cal. 2014) issued a decision examining whether coverage was available for loss of business income and feng...more

Don't Neglect to Understand Insurance Jargon

Unfortunately, insurance requirements in contracts are not easy to understand. The language used in insurance requirements is not always intuitive, but we all know that the consequences of not having the right insurance can...more

Supreme Court Of Missouri Holds CGL Policy Covers Statutory Damages Claim For Violations of Telephone Consumer Protection Act...

In Columbia Casualty, the Supreme Court of Missouri held that statutory damages for violations of the TCPA were firmly within the “property damage” and “advertising injury” coverage provided by a CGL policy. The Court...more

Insurance and the Polar Vortex: Recovering Losses from the Big Chill of 2014

The first two weeks of 2014 ushered in an extraordinary weather disaster affecting most of the United States, causing extensive property damage and business interruption as a result of freezing temperatures. On January 3,...more

New Jersey Bill Would Compel Insurers to Cover Faulty Construction Work

The New Jersey Legislature has entered the ongoing national debate about whether faulty construction work is considered an “occurrence” under general liability insurance policies. Introduced on November 25, 2013, A. 4510...more

A Construction Defect Insurance Carrier Need Only Demonstrate That Another Insurance Carrier's Policy May Potentially Cover The...

A California Appellate Court recently clarified the burden of proof for an insurance company seeking contribution from another insurance company in settlement of a construction defect action. When a company involved in...more

Georgia Supreme Court Holds Defective Work Is An Occurrence

In Taylor Morrison Servs. v. HDI-Gerling Am. Ins. Co., 2013 Ga. LEXIS 618 (July 12, 2013), the Georgia Supreme Court addressed whether a construction defect claim constitutes an “occurrence” for purposes of satisfying the...more

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

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...more

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