CGL Insurance Covers Damages Caused by Defective Workmanship of Subcontractor

See article in Construction Risk Newsletter:
ConstructionRisk.com Report Vol. #14, Issue #1

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Where a general contractor – builder was sued by a homeowner to recover damages from leaking windows, fungus growth, decayed OSB sheathing, deteriorating and decaying floor joists and water damage to the home interior, the contractor tendered the claim to its commercial general liability (CGL) insurance carrier on the basis that the claim arose out [...]

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General Contractor Can Recover Damages Caused by Sub’s Defective Work From the Sub’s CGL Policy

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Where a plumbing subcontractor installed water lines that did not meet the project specifications, and this caused damage to a neighboring property, the prime contractor sued the sub for negligent work and was entitled to recover its damages from the sub’s commercial general liability (CGL) policy because the court found the defective work constituted an [...]

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Defective Work of Subcontractor Covered under Prime Contractor CGL Policy

See article in Construction Risk Newsletter:
ConstructionRisk.com Report Vol. #13, Issue #6

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Where a commercial general liability (GCL) insurance carrier filed a declaratory judgment action against its insured contractor asking the court to declare that the carrier owed no defense or indemnification duty arising out of costs to repair water damage to homes caused by the faulty work of the contractor’s subcontractors, the court held that the [...]

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Federal Court in Tennessee Holds Insurer Responsible Under CGL Policy For Defending Contractor Against Negligence Claims

See article in Construction Risk Newsletter:
ConstructionRisk.com Report Vol. #13, Issue #6

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When an owner asserts a claim of negligent construction against a general contractor, the general contractor may seek to have its insurer provide a defense to the claims (i.e., pay for an attorney) under its commercial general liability (“CGL”) policy and, if the general contractor is found to have been negligent, to pay the judgment. [...]

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CGL Policy does not cover contractor’s defective work

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To what extent may defective workmanship of a contractor be covered under a commercial general liability (CGL) policy. Contractors have occasionally argued successfully that property damage or personal injury was imminent as a result of their defective work, and that the repair to the work must be deemed to be insured damage. More often that [...]

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Defective Workmanship Potentially Covered By Insurance

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An insurance dispute arose when the commercial general liability (CGL) insurance company refused to defend a suit by a prime contractor against an inspection firm (SLT, Inc.) that it had hired to inspect and approve shop welds of pipe sections that were brought to the construction site for installation. Large pipe sections were purchased by [...]

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Cost of replacing defective work excluded under Builder’s Risk Policy

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A construction contractor (Laquilia Construction, Inc.) poured concrete that failed to meet the specifications for minimum strength for the floor slab of a high rise commercial building. The defective concrete had to be ripped out and replaced. This replacement required reinforcing the building while the rework was performed. It also required various subcontractors to remove [...]

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