Jeffrey L. Hamera | Duane Morris The Michigan Supreme Court overturned precedent and joined the jurisdictions that allow damages arising from construction defects to be the basis of a claim against a subcontractor’s comprehensive general liability (“CGL”) policy written on a 1986 ISO form. This decision opens the door to CGL claims for construction defects… Continue reading Michigan Supreme Court Opens Door to CGL Claims for Construction Defects
Tag: CGL Policy
Enhancing The Prospects For Contractors To Have Insurance Coverage For Their Subcontractors’ Defective Work
Gregory P. Parsons and J.P. Stilz | Stites & Harbison I. INTRODUCTION. When a construction contractor engages in a construction project, it generally purchases a commercial general liability policy (“CGL”) to broadly cover it and, frequently, the property owner for claims that might arise during the course of construction. These insurance contracts are standard forms… Continue reading Enhancing The Prospects For Contractors To Have Insurance Coverage For Their Subcontractors’ Defective Work
First Circuit: No Coverage, No Duty to Investigate Alleged Loss Prior to Policy Period
Eric B. Hermanson and Austin D. Moody | White & Williams On April 1, 2020, the First Circuit, applying Massachusetts law, issued a potentially useful decision addressing the Montrose “known loss” language in ISO Form CGL policies. In Clarendon National Insurance Company v. Philadelphia Indemnity Insurance Company,[1] the court applied this language to allow denial of defense for claims… Continue reading First Circuit: No Coverage, No Duty to Investigate Alleged Loss Prior to Policy Period
Is Faulty Workmanship an “Occurrence” Under a CGL Policy?
Larry P. Schiffer | Squire Patton Boggs | September 16, 2019 Manufacturers often face multiple lawsuits when their products fail to perform as expected. Sometimes, the cause of the product’s failure is the faulty workmanship of a component manufacturer. When that is the case, the product manufacturer will seek damages from the component manufacturer for… Continue reading Is Faulty Workmanship an “Occurrence” Under a CGL Policy?
CGL Provides No Coverage for Damage to the Insured’s Work
Barry Zalma | Zalma on Insurance | March 22, 2019 Construction contracts are risk transfer devices. The owner shifts the risk of loss to the general contractor who shifts the risk of loss to subcontractors and all shift the risks of loss to their insurers. Commercial General Liability (CGL) policies agree to accept the risk… Continue reading CGL Provides No Coverage for Damage to the Insured’s Work