News & Analysis as of

Construction Defects Faulty Workmanship Insurance Industry

Cozen O'Connor

Claims Notes: September 2024

Cozen O'Connor on

Litigation arose over whether a suit for misrepresentation and breach of contract arising out of an easement triggered a Commercial General Liability (CGL) insurer's duty to defend. Internal confidential communications...more

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

Cozen O'Connor

Court Issues First LEG3 Defects Exclusion Decision

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In a case of first impression, the United States District Court for the District of Columbia (applying Illinois law) rejected a LEG3 exclusion as ambiguous. See S. Capitol Bridgebuilders “SCB” v. Lexington Ins. Co., 2023...more

Payne & Fears

Nevada Insureds Can Rely on Extrinsic Facts to Show that An Insurer Owes a Duty to Defend

Payne & Fears on

On Oct. 28, 2021, the Nevada Supreme Court in Zurich American Insurance Company v.. Ironshore Specialty Insurance Company, 137 Nev. Adv. Op. 66, held that an insured can rely on extrinsic facts to show that an insurer has a...more

Carlton Fields

Subcontractor Exception Torpedoes Insurers’ Defense To Faulty Workmanship Claim

Carlton Fields on

As this blog has reported, a line of cases deciding coverage disputes over faulty workmanship runs against (or, at least, around) a basic rule for interpreting insurance policies. Under that rule, the scope of coverage is...more

Pullman & Comley, LLC

No Contractor Is An Island: Florida Court Narrowly Applies “Your Work” Exclusion

Pullman & Comley, LLC on

When an insurer issues a Commercial General Liability policy to a contractor, the policy typically excludes coverage for the cost of repairing or replacing the contractor’s own defective work, but covers the cost of repairing...more

Cozen O'Connor

Sixth Circuit: A Michigan Collapse Extension Overrides Exclusions for Cracking and Defective Design

Cozen O'Connor on

In Joy Tabernacle — The New Testament Church v. State Farm Fire & Cas. Co., 2015 WL 3824733, 2015 U.S. App. LEXIS 10707 (6th Cir., Jun. 22, 2015), a unanimous panel of the federal Court of Appeals recently held that a...more

Cozen O'Connor

Pennsylvania Court Holds Defectively Designed Windows and Doors May Give Rise to an “Occurrence”

Cozen O'Connor on

On December 3, 2013, the intermediate Pennsylvania Court of Appeals decided Indalex, Inc. v. National Union Fire Ins. Co. of Pittsburgh, PA, and concluded that an “occurrence” under a commercial umbrella liability policy may...more

K&L Gates LLP

Connecticut Supreme Court Determines Damage Caused by Unintended Faulty Work Constitutes Property Damage Resulting from an...

K&L Gates LLP on

Jurisdictions are split over whether defective construction can give rise to an occurrence under commercial general liability insurance policies. Some jurisdictions have held that faulty workmanship cannot constitute the...more

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