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Construction Defects Commercial General Liability Policies Denial of Insurance Coverage

Rivkin Radler LLP

September 2024 Insurance Update

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In this month’s update, we discuss Russian-seized planes, Starbucks-caused traffic jams, a squabble over the use of a family name, a restaurant’s pandemic-based loss, a poorly built house, and whether insurance covers any of...more

Hinckley Allen

Contractors, Beware: General Liability Insurers Wrongfully Denying Claims for Damage Caused by Defective Subcontractor Work

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As a contractor, you are familiar with working together with subcontractors — delegating project scope as part of the overall job. However, when a subcontractor’s work is defective, who is liable for the damage?...more

Cozen O'Connor

Pennsylvania District Court Finds No Coverage for Foreseeable Damages to Third-Party Property Caused By Faulty Workmanship

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In Berkley Specialty Ins. Co. v. Masterforce Constr. Corp., No. 4:19-CV-01162, 2021 U.S. Dist. LEXIS 14006 (M.D. Pa. Jan. 26, 2021) (Brann, J.), the Court recently concluded that, under Pennsylvania law, all reasonably...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

Troutman Pepper

Federal Court in North Carolina Enforces Insurers’ Duty to Defend a General Contractor as an Additional Named Insured Under the...

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Westfield Ins. Co. v. Weaver Cooke Constr., LLC, 2019 BL 129431 (E.D.N.C. Apr. 11, 2019) - This case arises out of the alleged defective construction of a condominium complex in North Carolina. In 2009, the developer on...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

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

Carlton Fields

California Federal Court Holds Scope of Duty to Defend Is Determined by the Language of the Contract

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In Harper Construction Co. v. National Union Fire Insurance Co. of Pittsburgh, the Southern District of California rejected an insured’s attempt to expand a CGL policy’s definition of “suit” to encompass mere demands without...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

Carlton Fields

South Carolina Federal Court Denies Motion to Stay and Orders Insurer to Produce Documents

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The background of this case is as follows. In 2014, ContraVest Inc., ContraVest Construction Co., and Plantation Point Horizontal Property Regime Owners Association Inc. (collectively, “Plaintiffs”) brought suit in South...more

Stoel Rives -  Ahead of Schedule

California Court Finds Coverage When “Property Damage” Doesn’t Require Physical Injury By Definition

Although it may seem strange at first, the recent ruling by the California Fourth Appellate District Court in Thee Sombrero, Inc. v. Scottsdale Co., (2018 EL 5292072), holding that an insurer must pay for a claim where there...more

Saul Ewing LLP

Update: Ohio Supreme Court Denies Insurance Coverage for Contractor’s Defective Work

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On Oct. 9, 2018, the Ohio Supreme Court denied insurance coverage under a Commercial General Liability ("CGL") policy for a contract's defective work. The Court reasoned that "property damage caused by a subcontractor’s...more

Troutman Pepper

Fifth Circuit Holds Settlement Proceeds Received by General Contractor From Subcontractors Constitute “Other Insurance” Which...

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Satterfield & Pontikes Constr., Inc. v. United States Fire Ins. Co., 2018 U.S. App. LEXIS 21488 (5th Cir. Aug. 2, 2018) - This case arises out of an excess insurance provider’s refusal to cover damages incurred by the...more

Troutman Pepper

Applying Florida’s “Eight Corners Rule,” Eleventh Circuit Finds that Insurer Has a Duty to Defend Claim That Insured’s Faulty...

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Addison Ins. Co. v. 4000 Island Blvd. Condo. Ass’n, 2017 U.S. App. LEXIS 26870 (11th Cir. Dec. 28, 2017) - The owner of a high-rise condominium building in Florida hired a contractor to replace the building’s concrete...more

Perkins Coie

Absolute Pollution Exclusion—Not So Absolute

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Slapping insurers with breach of contract and bad faith, Washington state’s highest court recently found that a general liability policy’s so-called “absolute” pollution exclusion may not be so absolute. In Xia et al. v....more

Carlton Fields

Reading the Crystal Ball: Reservation of Rights Letters under South Carolina Law in the Wake of Harleysville Group Insurance v....

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The South Carolina Supreme Court recently took a firm stance on what constitutes a sufficient reservation of rights letter in Harleysville Group Insurance v. Heritage Communities, Inc., et al., — S.E.2d — , No. 2013-001281,...more

Snell & Wilmer

“Rip and Tear” Damage Remains Covered Under CGL Policy as “Accident”—for Now.

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The Colorado Supreme Court has approved a settlement between the parties to an appeal of the 2012 Colorado Pool Systems v. Scottsdale Insurance Company Court of Appeals case, leaving that ruling intact. The ruling parses a...more

Manatt, Phelps & Phillips, LLP

Insurance Recovery Law - December 2015

Court Rejects Attempt to Broaden "Employer's Liability" Exclusion, Requiring Coverage - Why it matters: A New York federal court recently ruled that an "Employer's Liability" exclusion in a CGL policy applies only when...more

Manatt, Phelps & Phillips, LLP

Insurance Recovery Law - November 2015

Despite Prior Suits, Policyholder Entitled to Coverage for DOJ Investigation - Why it matters: A policyholder was entitled to coverage for a Department of Justice (DOJ) investigation despite already facing possibly...more

Carlton Fields

The Importance Of 'The' In Crafting Insurance Exclusions

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A mason who performed work on a residential project was notified in 2006 that cracks had developed in his work. Several months later, the mason purchased a commercial general liability policy that expressly excluded coverage...more

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