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Insurance Industry Construction Defects Policy Exclusions

Cozen O'Connor

Claims Notes: May 2024

Cozen O'Connor on

The steel contractor named the general contractor an additional insured on its CGL policy. The steel contractor's welds were defective. The general contractor retrofitted the named insured's defective columns before they...more

Cozen O'Connor

Court Issues First LEG3 Defects Exclusion Decision

Cozen O'Connor on

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

Bradley Arant Boult Cummings LLP

California Appeals Court Says No Duty to Defend Where Policy Exclusion Applies

In Ali Heidari v. Golden Bear Insurance, a California appeals court recently affirmed a lower court’s decision to deny relief under a CGL policy, where the policy excluded from coverage work performed by subcontractors under...more

Rivkin Radler LLP

Insurance Update - November 2021

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We bring you our November Insurance Update. Here’s what happened over the past month. Insurers scored a hat trick before the Ninth Circuit, as the court found no coverage for pandemic-related business interruption...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

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

Proskauer - Insurance Recovery & Counseling

New York Insurance Law: Under Construction

Imagine you hired a general contractor to renovate the master bathroom of your home. The general contractor hired a subcontractor to do the plumbing work, but the subcontractor botched the job, resulting in a massive leak...more

White and Williams LLP

Complex Insurance Coverage Reporter – February 2018

White and Williams LLP on

An Insurer’s Guide to Reserving Rights: Tips for Avoiding Waiver and Estoppel - Insurers know all too well that the penalties for an ineffective reservation of rights letter can be severe...more

Carlton Fields

Look Beneath The Surface: No Coverage For DC Row House Collapse Under Builder’s Risk Policy

Carlton Fields on

The interpretation of a property insurance policy may seem like a dull endeavor, but courts sometimes face fundamental questions about what words mean, or how we conceptualize cause and effect. In Taja Investments LLC v....more

Carlton Fields

Florida Supreme Court Decides that Concurrent Causes Equal Coverage

Carlton Fields on

It’s said that “defeat is an orphan,” but insurable losses often have multiple, concurrent causes. In some cases, one or more of those causes might be outside the scope of coverage, either by omission or exclusion. In Sebo v....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

Nossaman LLP

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

Nossaman LLP on

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

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