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 … Continue reading Insurance Market Leader Ames and Gough report Premium Price Decreases
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 … Continue reading Owners and Contractors Protective Liability Coverage Form
A recent unpublished opinion by the Sixth Circuit Court of Appealshas held that a contractor’s allegedly poor workmanship did not constitute an “occurrence” under the contractor’s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 … Continue reading Kentucky Commercial Subcontractor’s Work Deemed to be Faulty and Insurance Not Triggered
"We overrule Century Indemnity and impose a "time on risk" approach to defining the scope of each CGL insurer's obligation to its insured in a progressive damage case."
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.”
insurer was not obligated to pay for water damages to a condominium building because the insurance policy specifically excluded coverage for damages caused or resulting from building construction and design defects.
"we overrule Colleton Prep to the extent it expands the narrow exception to the economic loss rule beyond the residential builder context"
South Carolina has served as a mystery in its application of Comprehensive General Liability policies within the construction industry. Auto Owners v. Virginia Newman provided the Supreme Court of South Carolina an opportunity to clear up a seminal issue regarding coverage provided to contractors: Does the defective work of a subcontractor constitute an insurable loss within the insuring agreement which binds a General Contractor and its insurer. The much anticipated opinion might have served to further muddy the waters as the court relied on an obscure exclusion within the policy, rather than the much broader "subcontractor exclusion" to rule that coverage for some damages caused by a subcontractor's work is not covered.
Chinese Drywall is getting national press, government scrutiny and a great deal of attention from insurers that might have underwritten policies for general contractors and subcontractors who may have, unknowingly, used drywall product imported from China during 2003-2007. Hurricane Katrina has been blamed on the shortage of United States produced drywall during that time period … Continue reading Chinese Drywall and Insurance