News & Analysis as of

Commercial General Liability Policies Property Damage Construction Industry

Carr Maloney P.C.

To Pay or Not to Pay “Rip and Tear” Damages

Carr Maloney P.C. on

Should a contractor’s Commercial General Liability (CGL) insurance policy cover the expense of uncovering defective work causing damage to the owner’s property as well as the costs of exposing or accessing damaged building...more

Robinson+Cole Construction Law Zone

Water Alone is Not Property Damage Under a CGL Policy in Connecticut

The Connecticut Appellate Court recently provided guidance on what does not constitute property damage under a typical contractor’s Commercial General Liability (CGL) insurance policy in Westchester Modular Homes of Fairfield...more

Saul Ewing LLP

Illinois Supreme Court Indicates Potential Path for Insurance Coverage for Construction Defects Under CGL Policies

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On November 30, 2023, the Illinois Supreme Court issued a decision in the case of Acuity v. M/I Homes of Chicago, LLC, et al., 2023 IL 129087 with significant implications for insurance coverage of construction defects under...more

K&L Gates LLP

Another Win for Policyholders as Illinois Reverses Course and Joins the Majority of States Recognizing CGL Policies Cover Property...

K&L Gates LLP on

On 30 November 2023, Illinois joined the majority of states that recognize that commercial general liability (CGL) insurance covers damage to one part of a construction project caused by construction defects in other parts of...more

Payne & Fears

Virginia Federal Court Reaffirms Construction Defect Claims Not Covered by CGL Policies

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Third-party claims seeking damages for faulty workmanship that results in property damage are covered under general liability policies in most jurisdictions. Virginia is not one of them. A federal district court recently...more

Payne & Fears

Texas Federal Court Delivers Another Big Win for Policyholders on CGL Coverage for Construction-Defect Claims and “Rip-and-Tear”...

Payne & Fears on

Insurers regularly argue that commercial general liability (“CGL”) policies are not performance bonds and therefore there is no coverage for claims seeking damages for defective or faulty workmanship. Insurers also argue...more

Payne & Fears

Pennsylvania Federal Court Confirms: Construction Defect Claims Not Covered by CGL Policies

Payne & Fears on

The construction industry operates under the constant spectre of claims seeking damages for defective or faulty workmanship. Fortunately, the law in most states treats these claims as covered under commercial general...more

Payne & Fears

Fifth Circuit Confirms: Insurer Must Defend Despite Your Work/Your Product Exclusion

Payne & Fears on

The United States Court of Appeals for the Fifth Circuit recently confirmed that liability insurers have a duty to defend their insureds in construction defect cases when the underlying complaint alleges damage to property...more

Ervin Cohen & Jessup LLP

Construction Defect Damages May Exceed Cost To Repair

Ervin Cohen & Jessup LLP on

Construction defect cases often involve damage claims beyond simply the cost to repair the allegedly defective unit or component. These consequential damages may include damages for loss of use, expenses for mitigation and...more

Cohen Seglias Pallas Greenhall & Furman PC

Protect Your Construction Project: Top 10 Insurance Provisions to Know

Presented by Jonathan A. Cass on April 27, 2021. Construction projects are dangerous places—people get hurt and property gets damaged. Whether you are a general contractor, a construction manager, or a subcontractor, it is...more

Carlton Fields

South Carolina Federal Court Finds No Coverage for Faulty Workmanship Damages Discovered Years After Occurrence-Based Policy...

Carlton Fields on

Potential Six-Year Delay in Notice of Flood and Mold Damage “Substantially Prejudiced” Insurer - In Atain Specialty Insurance Company v. Carolina Professional Builders, LLC et al., 2:18-cv-2352-BHH (D.S.C. Oct. 2, 2020),...more

Bradley Arant Boult Cummings LLP

Coverage for Defective Work? Michigan Joins Majority

Michigan has joined the majority of jurisdictions in holding that a general liability policy may provide coverage for claims for property damage allegedly caused by the defective work of a subcontractor. In a unanimous...more

Sheppard Mullin Richter & Hampton LLP

Court Finds That “Care, Custody Or Control” Exclusion Did Not Negate Coverage For General Contractor Who Shared Jobsite...

McMillin Homes Constr., Inc. v. National Fire & Marine Ins. Co., 35 Cal.App.5th 1042 (2019); Fourth Appellate District Court of Appeal, Division One, Case No. D074219 (June 5, 2019). McMillin Homes Construction, Inc....more

White and Williams LLP

PA Superior Court Provides Clarification on Definition of CGL “Occurrence” When Property Damage Is Caused by Faulty Building...

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The standard for an “occurrence” under a commercial general liability (CGL) insurance policy has been addressed on several occasions by Pennsylvania courts when an insured has allegedly performed faulty workmanship on a...more

Spilman Thomas & Battle, PLLC

A Case to Watch: Brayman v. Westfield Insurance

Pennsylvania law suggests construction defects generally are not considered an "occurrence" under most CGL insurance policies because defects are not true accidents, e.g., a fortuitous event. However, an exception generally...more

Farella Braun + Martel LLP

“That Particular Part” – Yet More

Massachusetts Appeals Court Gets It Right – Mostly - Hot on the heels of the Federal Tenth Circuit Court of Appeals’ decision in MTI, Inc. v. Employers Insurance Company of Wausau, __ F.3d __, 2019 WL 321423 (10th Cir....more

Bricker Graydon LLP

Got coverage? What to consider in the wake of the Ohio Supreme Court’s ruling on Ohio Northern University v. Charles Construction...

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On October 9, 2018, in Ohio N. University v. Charles Constr. Servs., Inc., Slip Opinion 2018-Ohio-4057, the Ohio Supreme Court ruled that property damage caused by a subcontractor’s allegedly defective work was not covered...more

Farella Braun + Martel LLP

The 10th Circuit Correctly Construes “That Particular Part” Narrowly

We do not often write about coverage opinions from jurisdictions as far away as Oklahoma; however, a recent case from the Federal Tenth Circuit looked at one of our favorite topics and came out with a much better reasoned...more

Faegre Drinker Biddle & Reath LLP

Illinois Appellate Court Rejects Federal Insurance Coverage Analysis, Finds Duty to Defend Against Construction Defect Allegations

On March 29, 2019, the Illinois Appellate Court issued an opinion clarifying when a duty to defend against construction defect allegations exists under a subcontractor’s commercial general liability (CGL) policy. The decision...more

Troutman Pepper

The Buckeye State Bucks Recent Trend: Ohio Supreme Court Holds That Property Damage Caused By A Subcontractor’s Faulty Work Does...

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Ohio N. Univ. v. Charles Constr. Servs., 2018 Ohio LEXIS 2375 (Oct. 9, 2018) - This case arose out of the construction of an inn and conference center at Ohio Northern University (“ONU”). After completion of the project,...more

White and Williams LLP

Third Circuit Court of Appeals Concludes “Soup to Nuts” Policy Does Not Include Faulty Workmanship Coverage

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Earlier this month, in Frederick Mutual Insurance Company v. Hall, the U.S. Court of Appeals for the Third Circuit concluded that coverage for faulty workmanship claims is “simply not the kind of coverage insurance agents and...more

Pillsbury - Policyholder Pulse blog

Ohio Supreme Court Finds Subcontractor’s Faulty Workmanship Causing Damage to the Work Itself Not Covered under CGL Policy

Last week, the Ohio Supreme Court unfortunately narrowed the scope of coverage for a subcontractor’s faulty workmanship. The court held in Ohio Northern University v. Charles Construction Services, Inc. that faulty...more

Cohen Seglias Pallas Greenhall & Furman PC

Construction in Brief: 2018 Volume 2

Pulling the Continuous Trigger: Insurance Policies and Progressive Property Damage in New Jersey - When a property owner claims damages due to defective construction, the first step for a contractor is to notify its...more

Pillsbury - Policyholder Pulse blog

The Devil in the Details: When Settlements with Co-Defendants Become “Other Insurance”

As the old adage goes, “the devil is in the details.” Insurance policy terms do not always apply in ways that policyholders expect. For this reason, it is imperative to understand how coverages, definitions and exclusions...more

K&L Gates LLP

The Tenth Circuit’s Prediction: New York State Likely to Follow Trend Recognizing Damages Caused by Subcontractor’s Faulty Work is...

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The United States Court of Appeals, Tenth Circuit recently issued a favorable decision for policyholders finding property damage arising from a subcontractor’s faulty work arose from an accidental “occurrence” under New York...more

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