TARGETED TENDERS

Construction defect cases are occurrence based matters which, in South Carolina, are pre-determined to involve the occurrence of property damage each and every year following a construction project. The “continuous trigger” theory puts the onus on a defense attorney to send notice in the form of a “tender letter” to all insurers affording CGL coverage to an insured for the time on risk. Today we … Continue reading TARGETED TENDERS

OHIO DECISION PARTS WAYS WITH THE NORM AS TO CONSTRUCTION DEFECT COVERAGE FOR GENERAL CONTRACTORS

On October 9, 2018, the Ohio Supreme Court issued an important decision in Ohio N. Univ. v. Charles Constr. Servc., Inc., Slip Opinion 2018-Ohio-4057.  Departing from the national majority view, the Ohio Supreme Court held that a general contractor’s commercial general liability policy does not cover claims for property damage caused by a subcontractor’s faulty work. Specifically, the Court reasoned that faulty work is not accidental … Continue reading OHIO DECISION PARTS WAYS WITH THE NORM AS TO CONSTRUCTION DEFECT COVERAGE FOR GENERAL CONTRACTORS

Duty to Defend Triggered in Florida

Court rules that insurers must treat notice of claim for construction defects as a lawsuit for purposes of duty to defend. A pre suit letter is deemed to be a “suit” or “suit papers” in a policy. The Sapphire Condominium in Fort Lauderdale (Credit: Keller Williams Realty) Florida has issued a controversial and sweeping ruling which will impact insurers in the construction defect arena. “w]here … Continue reading Duty to Defend Triggered in Florida

Contractors and Force Majeure: Contractual Protection from Hurricanes and Severe Weather

This season is not special as hurricanes are a part of life on the east coast and gulf shores. From New York to Louisiana, just about every state has seen massive property loss from hurricanes during the past ten years. We often see harsh outcomes for those on the coast living in finished homes. What happens to the unfinished and current projects awaiting completion? If … Continue reading Contractors and Force Majeure: Contractual Protection from Hurricanes and Severe Weather

Insurance Market Leader Ames and Gough report Premium Price Decreases

Although a slim majority of insurance companies providing architects and engineers professional liability insurance saw their rates stabilize in 2016, nearly one in three experienced modest rate decreases, according to a new survey by Ames & Gough. Despite intense competition, insurers are maintaining underwriting discipline and placing greater emphasis on claims experience. This year, 95 percent of the insurers surveyed identified recent claims experience as … Continue reading Insurance Market Leader Ames and Gough report Premium Price Decreases

Owners and Contractors Protective Liability Coverage Form

I intend to devote several upcoming posts on Owner Controlled Insurance Policies (“OCIP”) or “WRAP” coverage due to its continued emergence in the construction, insurance, and legal industries.  In an effort not to confuse, this article deals (“OCP”), which is an acronym for Owners and Contractors Protective Liability insurance coverage.  Coverage for Operations of Designated Contractors (CG 00 09 12 07) is,  as suggested by … Continue reading Owners and Contractors Protective Liability Coverage Form

Kentucky Commercial Subcontractor’s Work Deemed to be Faulty and Insurance Not Triggered

A recent unpublished opinion by the Sixth Circuit Court of Appealshas held that a contractor’s allegedly poor workmanship did not   constitute an “occurrence” under the contractor’s policy of insurance.  The facts in this matter can be summarized, as follows:  Wal-Mart contracted with MW Builders (“Contractor”) to construct a new store in Kentucky. Contractor subcontracted the site preparation and some preliminary foundation work to a subcontractor … Continue reading Kentucky Commercial Subcontractor’s Work Deemed to be Faulty and Insurance Not Triggered

The Scope of Additional Insured Coverage and Duties of an Indemnifying Subcontractor in Construction Project

The concept known as an “additional insured” refers to a person or organization that enjoys the benefits of being insured under an insurance policy, in addition to whoever originally purchased the insurance policy. Typical language within insurance policies seeks to limit the subject matter that can be “additionally insured.” Continue reading The Scope of Additional Insured Coverage and Duties of an Indemnifying Subcontractor in Construction Project