Article Date: 08/09/2013


Federal Appeals Court: No Commercial General Liability Coverage for Property Damage to Insured Contractor’s Own Defective Work and Resulting Loss on Use During Its Ongoing Operations


A federal appeals court has ruled that the Performing Operations Exclusion, the Incorrectly Performed Work Exclusion, and the Impaired Property Exclusion each separately barred commercial general liability coverage for an insured bridge demolition contractor’s bungled work during its ongoing operations and resulting loss of use of a river to navigation.

 

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:

 

"The opinion ignores the 'that particular part' limitation found in exclusions j(5) and j(6). Those exclusions only exclude coverage to the 'particular part' that involves the work. That would be the part of the river directly below the bridge. However, the use of the entire river was lost. Apparently, the court considered the river a single, indivisible whole without 'parts.' However, it is common usage to say, 'The contractor only worked on the part of the river directly under the bridge.'"

 



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