News & Analysis as of

Insurance Litigation Property Damage Construction Industry

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

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

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”...

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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

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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

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

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

Hinshaw & Culbertson LLP

[Webinar] Webinar Series: Insurance Insights – What Insurers Need to Know in 2021 - Construction Claims: A Practical Reservation...

Join us for Hinshaw's Webinar Series: Insurance Insights – What Insurers Need to Know in 2021. This series will feature insurance thought leaders from Hinshaw and RPC, presenting on the most pressing insurance claims topics...more

Cohen Seglias Pallas Greenhall & Furman PC

[Webinar] Protect Your Construction Project: Top 10 Insurance Provisions to Know - April 27th, 12:00 pm - 1:00 pm ET

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 imperative that you understand the importance of...more

Carlton Fields

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

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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

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

New Jersey Federal Court Examines And Applies The “j.(5)” Ongoing Operations Exclusion

In PJR Construction of N.J. v. Valley Forge Insurance Company, 2019 U.S. Dist. LEXIS 127973 (D.N.J. July 31, 2019) (PJR Construction), a New Jersey federal court held that the “j.(5)” “Ongoing Operations Exclusion” applied to...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

White and Williams LLP

Wisconsin Supreme Court Holds that Subrogation Waiver Does Not Violate Statute Prohibiting Limitation on Tort Liability in...

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In Rural Mut. Ins. Co. v. Lester Bldgs., LLC 2019 WI 70, 2019 Wisc. LEXIS 272, the Supreme Court of Wisconsin considered whether a subrogation waiver clause in a construction contract between the defendant and the plaintiff’s...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

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

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

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

White and Williams LLP

Top Developments – February 2017

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JP Energy Marketing, LLC v. Commerce & Industry Insurance Company, et al., No. 115285, 2018 Okla. LEXIS 11 (Okla. Feb. 5, 2018) - Oklahoma Supreme Court in a case of first impression authorizes an award of appeal-related...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

Cozen O'Connor

Coverage to Rebuild a Foundation to Comply with Changed Building Codes Following a Fire are Subject to Code-Upgrade Endorsement’s...

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Does the efficient proximate cause rule serve to afford coverage for the additional costs to rebuild the foundation of a home in compliance with changed building code requirements beyond the sublimit of liability of an...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

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