News & Analysis as of

Construction Defects Duty to Defend Insurance Industry

Cozen O'Connor

Claims Notes: September 2024

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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

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

Hinshaw & Culbertson - Insights for Insurers

[White Paper] United States Insurance Trends and Decisions 2023

As 2024 rapidly approaches, we look back at some of the key decisions, trends, and developments impacting the U.S. insurance industry in 2023 and look ahead at some trends and cases to watch in 2024. Insurers continue to...more

Carlton Fields

Alabama Federal Court Finds No Duty to Defend Lawsuit Alleging Concealment of Defects in Sale of Home

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In Nationwide Mutual Fire Insurance Co. v. Carmichael, the U.S. District Court for the Northern District of Alabama, applying Alabama law, entered summary judgment ruling that Nationwide Fire Insurance Co. had no duty to...more

Payne & Fears

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

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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

Payne & Fears

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

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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

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

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

Boring Through The Details: U.S. District Court Declares Boring Company Dispute Not Covered by Insurance Policies

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Maxum Indemnity Co. v. Robbins Co., P.C., No. 1:17-CV-01968, 2018 U.S. Dist. LEXIS 57729 (N.D. Ohio Mar. 28, 2018) - On March 21, 2018, the United States District Court for the Northern District of Ohio granted a motion...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

Rumberger | Kirk

Chapter 558 Pre-Suit Notice May Trigger an Insurer's Duty to Defend and Indemnify

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The Supreme Court of Florida recently issued an opinion in Altman Contractors, Inc. v. Crum & Forster Specialty Ins. Co., No. SC16-1420, 2017 WL 6379535 (Fla. Dec. 14, 2017), which impacts an insurer’s duty to defend and...more

Saul Ewing LLP

An Insurer’s Duty to Defend is Now Triggered by Pre-Suit Notices Under Florida’s Construction Defect Statute, But Only With an...

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In a case of first impression that will undoubtedly have significant effects on Florida’s construction and insurance industries, the Florida Supreme Court recently decided that an insurer’s duty to defend under a standard...more

Nossaman LLP

AIG Must Defend Additional Insureds

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That it took an appellate court to order AIG’s Lexington Insurance to honor its additional insured obligations is a measure of how frequently insurers attempt to dodge this important contractual obligation. The case of...more

Haight Brown & Bonesteel LLP

Ownership is Not a Conclusive Factor for Ongoing Operations Additional Insured Coverage

In McMillin Management Services v. Financial Pacific Ins. Co. (No. D069814, filed 11/14/17), a California appeals court held that an insurer had a duty to defend a general contractor under an “ongoing operations” additional...more

Sherman & Howard L.L.C.

Construction Advisory: Passage, Defeat, and Uncertainty: The Colorado General Assembly Tackles Construction Defect Reform in the...

The Colorado General Assembly is heading towards the conclusion of this year’s legislative session. Although one construction defect bill, House Bill 1279, passed the House and is expected to pass the Senate, most bills have...more

Carlton Fields

For “At-Issue Waiver,” The Best Defense May Not Be An Affirmative Defense

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As this blog has repeatedly documented, it can be hard for insurers to assert the attorney-client privilege in the context of bad faith litigation. One difficulty arises in states that enforce a presumption against the...more

Carlton Fields

Construction Case Law Update - July 2015 #2

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CGL Policies; Declaratory Judgments; Appeal of a Partial Final Judgment – A commercial general liability insurer and its insured sought declaratory relief over the question of insurance coverage and the duty to defend...more

Carlton Fields

Construction Case Law Update - July 2015

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Involuntary Dismissal of Counterclaims – In a suit between a developer and general contractor, the trial court erred in dismissing the general contractor’s counterclaims, without a motion by the developer, before the...more

Saul Ewing Arnstein & Lehr LLP

Western District of Washington: Insured That Violated Duties of Notice and Cooperation Could Not Make Out Claim for Bad Faith...

Granite State Ins. Co. v. Integrity Structures, LLC, No. C14-5085BHS, 2015 WL 136006 (W.D. Wash. Jan. 9, 2015). The U.S. District Court for the Western District of Washington held that an insurer did not act in bad faith...more

Neal, Gerber & Eisenberg LLP

Finding Insurance Coverage for Consumer Products Class Action Complaints

Consumer class action claims are a familiar tool for addressing dissatisfaction with a defective product. Given that one of the goals of a consumer class action claim is to recover damages for the claimants, triggering...more

Burr & Forman

Ongoing Or Completed Operations? Fifth Circuit Finds No Duty To Defend Contractor Under Additional Insured Endorsement

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In Woodward, L.L.C. v. Acceptance Indemnity Insurance Company, WL 535726 (5th Cir. 2014), the Fifth Circuit Court of Appeals held the insurer had no duty to defend the contractor named as an additional insured under a...more

Orrick, Herrington & Sutcliffe LLP

Policy Observer - July 2013

Getting Over the Bar: Second Circuit Requires Actual Payment of Underlying Limits In Order to Trigger Excess D&O Policies - In June, the Second Circuit held that two Federal Insurance Company ("FIC") excess D&O...more

Farella Braun + Martel LLP

New case affirms broad duty to defend in construction defect case where damage dates unclear

A new case from Oregon deals with a recurring problem in construction defect litigation—the absence of clear dates in the complaint regarding when damage is alleged to have occurred. ...more

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