News & Analysis as of

Insurance Claims Construction Defects Insurance Litigation

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

Carlton Fields

Iowa Supreme Court Reaffirms Rule That Faulty Workmanship Is Not an Occurrence, Leaving Question of Statutory Fraud for Another...

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In Dostart v. Columbia Insurance Group, the Iowa Supreme Court reaffirmed the rule — in Iowa, and many other jurisdictions — that faulty workmanship by a contractor does not constitute an “occurrence” as defined in a standard...more

Payne & Fears

Payne & Fears Secures $1.9 Million in Defense Costs for Homebuilder Client in Summary Judgment Win Against Insurer

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On July 1, 2025, the U.S. District Court for the Central District of California entered summary judgment in favor of a national homebuilder against its insurance company, United Specialty Insurance Company (“USIC”), holding...more

Davis Wright Tremaine LLP

Oregon Supreme Court Expands Meaning of "Accident" in Insurance Policy

Owners can trigger an insurance policy without formally alleging a tort claim if the contractor's defective work could support a tort claim. The Oregon decision may allow property owners to assert only a breach of...more

Miller Nash LLP

Oregon Supreme Court Reverses Insurance Coverage Denial for Contractor in Twigg v. Admiral Ins. Co.

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In a long-awaited decision that helps contractors obtain coverage for construction defects, the Oregon Supreme Court in Twigg v. Admiral Ins. Co. 371 Or. 308 (2025) ruled that coverage under a commercial general liability...more

Stoel Rives LLP

Oregon Supreme Court Expands CGL Coverage for Construction Defects: Twigg v. Admiral Insurance Company

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Businesses and homeowners in Oregon often assume their insurance will cover a contractor’s faulty work. That assumption was put to the test in Twigg v. Admiral Insurance Co., 373 Or. 475 (2025), an Oregon Supreme Court...more

Carlton Fields

Eighth Circuit Finds No Coverage Under “Ensuing Loss” Provision Under Arkansas Law

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“Ensuing loss” provisions have long been the subject of nuanced arguments in insurance litigation. The provisions, which sometimes afford coverage for a “covered loss” stemming from an expressly excluded peril, serve as...more

Cozen O'Connor

Coverage for Defective Workmanship Not Restored by Ensuing Loss Provision

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In Bob Robison Commercial Flooring Inc. v. RLI Insurance Company (2025 WL 852889 (8th Cir. 2025), the United States Court of Appeals for the Eighth Circuit determined that an ensuing loss provision of a builder’s risk...more

White and Williams LLP

Construction Projects and Subrogation: Timing is Everything

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In American Fam. Ins. Co. v. NB Elec., Inc., No. A24-0377, 2025 Minn. App. LEXIS 12, the Court of Appeals of Minnesota (Court of Appeals) considered whether an insurer’s subrogation action was time barred under Minnesota’s...more

Rivkin Radler LLP

January 2025 New York Insurance Coverage Law Update

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The insured owned premises located in Huntington Station, NY. The Claimant was allegedly injured when she slipped and fell at the premises. The Claimant sued the insured and the insured sought coverage under her homeowners...more

Conn Kavanaugh

First Circuit Rules on Important Coverage Issue for Contractors.

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First Circuit Court of Appeals Rules That Standard Commercial General Liability Policy Excludes Coverage for Downstream Property Damage When General Contractor’s Scope of Work Covers Entire Building - It is well-accepted...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

Rivkin Radler LLP

September 2024 Insurance Update

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In this month’s update, we discuss Russian-seized planes, Starbucks-caused traffic jams, a squabble over the use of a family name, a restaurant’s pandemic-based loss, a poorly built house, and whether insurance covers any of...more

Cozen O'Connor

Claims Notes: September 2024

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Litigation arose over whether a suit for misrepresentation and breach of contract arising out of an easement triggered a Commercial General Liability (CGL) insurer's duty to defend. Internal confidential communications...more

Robinson+Cole Construction Law Zone

Water Alone is Not Property Damage Under a CGL Policy in Connecticut

The Connecticut Appellate Court recently provided guidance on what does not constitute property damage under a typical contractor’s Commercial General Liability (CGL) insurance policy in Westchester Modular Homes of Fairfield...more

Cozen O'Connor

Claims Notes: May 2024

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The steel contractor named the general contractor an additional insured on its CGL policy. The steel contractor's welds were defective. The general contractor retrofitted the named insured's defective columns before they...more

Payne & Fears

Liability Coverage For Construction Claims May Turn On Narrow Factual Distinctions

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In a recent trial court decision, a Montana federal court reminds us how fragile insurance coverage can be for construction-related insurance claims. Specifically, this case illustrates how seemingly small factual nuances can...more

Rivkin Radler LLP

Insurance Update - December 2023

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Our December Insurance Update features a few firsts from state high courts. For the first time: •The Supreme Court of Hawaii addresses reimbursement of defense costs. •The Supreme Court of Illinois addresses coverage for...more

Carlton Fields

Alabama Federal Court Finds No Duty to Defend Lawsuit Alleging Concealment of Defects in Sale of Home

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In Nationwide Mutual Fire Insurance Co. v. Carmichael, the U.S. District Court for the Northern District of Alabama, applying Alabama law, entered summary judgment ruling that Nationwide Fire Insurance Co. had no duty to...more

Marshall Dennehey

Doubling Down: Two Third Circuit Decisions Reaffirm that Faulty Workmanship Does Not Constitute an “Occurrence” in Pennsylvania

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In two separate decisions handed down last month, the Third Circuit Court of Appeals re-affirmed that, under Pennsylvania law, claims against contractors for faulty workmanship do not constitute an “occurrence” and are...more

Carlton Fields

Illinois Appellate Court Finds No CGL Coverage for Defective Elevator Suit

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In the recent decision of Korte & Luitjohan Contractors Inc. v. Erie Insurance Exchange, the Fifth District Appellate Court of Illinois reaffirmed that, under Illinois law: (1) construction defects generally do not trigger...more

Cozen O'Connor

Pennsylvania District Court Finds No Coverage for Foreseeable Damages to Third-Party Property Caused By Faulty Workmanship

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In Berkley Specialty Ins. Co. v. Masterforce Constr. Corp., No. 4:19-CV-01162, 2021 U.S. Dist. LEXIS 14006 (M.D. Pa. Jan. 26, 2021) (Brann, J.), the Court recently concluded that, under Pennsylvania law, all reasonably...more

Hinshaw & Culbertson LLP

[Webinar] Webinar Series: Insurance Insights – What Insurers Need to Know in 2021 - Construction Claims: A Practical Reservation...

Join us for Hinshaw's Webinar Series: Insurance Insights – What Insurers Need to Know in 2021. This series will feature insurance thought leaders from Hinshaw and RPC, presenting on the most pressing insurance claims topics...more

Wiley Rein LLP

Insurer that Breached Duty to Defend Bears Burden on Allocation of Defense Costs

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Applying Arizona law, the United States District Court for the District of Arizona held that an insurer that breached its duty to defend bears the burden of demonstrating that an allocation of defense costs between covered...more

Butler Weihmuller Katz Craig LLP

Heads I win, Tails You Lose: Southern Owners Insurance Company v. MAC Contractors

On July 29, 2020, the Eleventh Circuit Court of Appeals issued its opinion in Southern Owners Ins. Co. v. MAC Contractors, of Fla., LLC, --- Fed. Appx. ---, 2020 WL 4345199 (11th Cir. July 29, 2020).  While claiming to follow...more

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