News & Analysis as of

Construction Industry Policy Exclusions

Cozen O'Connor

Court Interprets “Completion” of a Project Under Builder’s Risk Insurance

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In Luke, Inc. v. Berkley National Insurance Company, 2025 WL 2210783 (W.D. Tenn. 2025), the United States District Court for the Western District of Tennessee determined that the “completion” of a construction project for...more

Cozen O'Connor

Court Differentiates Faulty and Defective Workmanship from Vandalism or Malicious Mischief

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In Carr v. Spinnaker Insurance Company, the United States Court of Appeals for the Ninth Circuit upheld the district court’s finding that property damage resulting from objectionable and imperfect work performed by an...more

Rivkin Radler LLP

May 2025 New York Insurance Coverage Law Update

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Utica National Assurance Company issued a liability policy to Bond Painting Company. Bond’s employee was injured working at a construction project at premises leased by Amazon.com Services Inc. and filed a bodily injury...more

Carlton Fields

Texas Appeals Court Finds Project Owner Excluded From Coverage as Claimants’ Statutory Employer

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On April 3, 2025, a Texas state appeals court reversed a trial court order awarding Exxon Mobil $25 million under an umbrella insurance policy issued by Lexington Insurance Co. to Brock Services Ltd. The appeals court found...more

Marshall Dennehey

Adequate Notice Requires More Than Delivery of a Policy

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A December 31, 2024, decision from the Supreme Court of Idaho found that adequate notice to an insured required more than the delivery of a policy and, due to the insurer’s failure to do so, coverage under a pre-existing...more

Rivkin Radler LLP

New York Insurance Coverage Law Update — Compilation 2024

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An owner, general contractor (GC) and subcontractor (Sub) were sued by injured workers at a construction site, and they were defended by the Sub’s insurer, U.S. Specialty Insurance Company. U.S. Specialty tendered their...more

Rivkin Radler LLP

December 2024 Insurance Update

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There’s been plenty of litigation over whether construction defect claims qualify for coverage under a CGL policy. This month, we discuss two federal circuit court rulings (First and Seventh Circuits) that reach opposite...more

MG+M The Law Firm

US Appeals Court Upholds No CGL Coverage for General Contractor for Subcontractor's Defective Work

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On November 8, 2024, the US Court of Appeals for the First Circuit (the Court) issued a decision in the matter of Admiral Insurance Company, et al. v. Tocci Building Corporation, et al., No. 22-1462 (1st Cir. 2024). The...more

Rivkin Radler LLP

October 2024 New York Insurance Coverage Law Update

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The insured admittedly punched and threw the claimant to the ground, but the insured maintained during her plea for reckless assault in criminal court that the claimant was the aggressor, she acted in self-defense, and that...more

Carr Maloney P.C.

Coverage Exclusion Under Commercial General Liability Policy In Light of OCIP

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Understanding coverage exclusions in a subcontractor’s commercial general liability insurance policy can be a daunting task. What the insuring language of the policy appears to provide, may be taken away through a policy...more

Dorsey & Whitney LLP

Arizona Supreme Court Decision Could Affect Lending Practices

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Construction lenders beware – a recent Arizona Supreme Court decision interpreting Exclusion 3(a) of standard-form title-insurance policies could mean lenders are not insured against a senior mechanics’ lien if the lender’s...more

Bradley Arant Boult Cummings LLP

California Appeals Court Says No Duty to Defend Where Policy Exclusion Applies

In Ali Heidari v. Golden Bear Insurance, a California appeals court recently affirmed a lower court’s decision to deny relief under a CGL policy, where the policy excluded from coverage work performed by subcontractors under...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

Rivkin Radler LLP

New York Insurance Coverage Law Update - June 2021

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First Department Finds Exterior Work Over Two Stories Exclusion Did Not Apply To Accident From Work On Lower Floors- Adelphi University hired a general contractor for a construction project to build, from the ground up, a...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

Hinshaw & Culbertson - Insights for Insurers

What a Difference a Word Makes: "Any Insured" Cross Liability Exclusion Bars Coverage for Lawsuit Against Additional Insured

Based on the policy's use of the term "any insured" instead of "the insured" in a cross liability exclusion, a Massachusetts appeals court recently ruled that an additional insured contractor was not entitled to coverage...more

Bradley Arant Boult Cummings LLP

An Insurer’s Duty to Defend does not Extend to a Construction Claim that Falls Clearly Within a Policy Exclusion

Like most states, Florida follows the rule that an insurer’s duty to defend is separate from and broader than its duty to indemnify for a potentially covered occurrence. Last week, in South Winds Construction Corp. v....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

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

Farella Braun + Martel LLP

The 10th Circuit Correctly Construes “That Particular Part” Narrowly

We do not often write about coverage opinions from jurisdictions as far away as Oklahoma; however, a recent case from the Federal Tenth Circuit looked at one of our favorite topics and came out with a much better reasoned...more

White and Williams LLP

Two Recent Cases Highlight the Importance of Complying With New York’s Coverage Disclaimer Rules

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As two recent cases demonstrate, a coverage disclaimer in New York is only as good as its compliance with that state’s various rules for perfecting a disclaimer in connection with a bodily injury claim. Under New York...more

Bradley Arant Boult Cummings LLP

More than Meets the Eye: Policy Exclusion May Not Apply When Initial Event is Covered Occurrence - Construction and Procurement...

In a 2017 opinion, Xia v. ProBuilders Specialty Insurance Company, the Washington State Supreme Court analyzed whether an insurer breached its duty of good faith and fair dealing in refusing to defend its contractor insured...more

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