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Article Date: 10/11/2013


State Supreme Court: No Commercial General Liability Coverage for Property Damage to Insured Contractor’s Own Work, But the Door Is Open for a Possible Future Reversal on the Issue


By Scott Turner

 

A state supreme court has again ruled that property damage to a general contractor’s own work does not satisfy the “occurrence” requirement in a non-standard commercial general liability (CGL) policy, but it opened the door to the possibility that the opposite might be true when the most recent standard CGL form was used.

 

The ConstructionPro Week summary of this case is available to ConstructionPro Network members and includes:

  • The citation for the case
  • The details of the case
  • Author’s commentary
  • A link to the complete PDF copy of the original opinion

Here is a portion of the Author's Commentary:

 

"Why would the court raise an exclusion, and an exception within it, in an opinion involving the 'occurrence' requirement? Because several courts (the Second Circuit of the U.S. Court of Appeals, the Connecticut Supreme Court, and the Supreme Court of West Virginia) very recently have used that exception as the basis for joining a growing national trend by reversing prior holdings that held that defective work cannot satisfy the 'occurrence' requirement and now finding that defective construction can be an 'occurrence.'"

 



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