Fifth Circuit Requires Causal Distinction for Ensuing Loss Exception to Faulty Work Exclusion

Avery J. Cantor and William S. Bennett | Saxe Doernberger & Vita In Balfour Beatty v. Liberty Mutual Ins. Co., the 5th Circuit Court of Appeals provided valuable insight on coverage available through ensuing loss exceptions to faulty work and design exclusions in builder’s risk insurance policies. In Balfour Beatty, the Court held that, in order to establish… Continue reading Fifth Circuit Requires Causal Distinction for Ensuing Loss Exception to Faulty Work Exclusion

Insurers Must Defend Allegations of Faulty Workmanship

Tred R. Eyerly | Insurance Law Hawaii     Granting the insured’s motion for partial judgment on the pleadings, the court determined the insurers had a duty to defend. Suez Treatment Solutions, Inc. v. Ace Am. Ins. Co. & Liberty Mut. Fire Ins. Co., 2022 U.S. Dist. LEXIS 59044 (S. D. N. Y. March 30, 2022). … Continue reading Insurers Must Defend Allegations of Faulty Workmanship

Insurer Must Defend Faulty Workmanship Claims

Tred R. Eyerly | Insurance Law Hawaii    The court determined that the insurer improperly denied a defense for construction defect claims made against the insured. Amerisure Mut. Ins. Co. v. McMillin Tex. Homes, 2022 U.S. Dist. LEIS 40363 (W.D. Texas March 8, 2022).      McMillin was a developer, general contractor and home seller. It… Continue reading Insurer Must Defend Faulty Workmanship Claims

Prior Occurrence Exclusion Bars Coverage for Construction Defects

Tred R. Eyerly | Insurance Law Hawaii        While the insured’s faulty work constituted an occurrence under Florida law, a prior occurrence exclusion barred coverage. Pro-Tech Caulking & Waterproofing v. TIG Ins. Co., 2022 U.S. Dist. LEXIS 12319 (S.D. Fla. Jan. 19, 2022).     Pro-Tech was a waterproofing subcontractor for construction of a oceanfront… Continue reading Prior Occurrence Exclusion Bars Coverage for Construction Defects

Pennsylvania Federal Court Confirms: Construction Defect Claims Not Covered by CGL Policies

Nathan Cazier and Scott Thomas | Payne & Fears 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 liability (“CGL”) policies. A small minority of states take a much stingier view. In a… Continue reading Pennsylvania Federal Court Confirms: Construction Defect Claims Not Covered by CGL Policies

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