Insurers and policyholders continue to battle over whether there is insurance coverage for injury or damage that arises from defective construction. The questions are complicated. While it is nearly universally true that an insurer won’t pay solely for the repair of an insured’s own faulty work, a majority of states recognize that construction defect claims are covered, at least in part, where the faulty work causes damage to property other than the policyholder’s own work. But the amount of coverage available for judgments or settlements can vary greatly depending on the jurisdiction, the specific facts of the claim, and the policy language at issue.
This seminar will explore the considerations savvy risk managers and policyholders consider in evaluating this risk, and discuss the availability of new policy endorsements to minimize the risk of an uncovered claim.