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Contractual Liability Exclusion Bars Coverage for Breach of Contract Claim against Contractor by a Third Party

by Kent Holland | Jun 7, 2011 | indemnification clause, Newsletter Article

A general contractor under contract to the Dallas Area Rapid Transit Authority (DART) was sued by the owner of a building adjacent to the construction site, alleging that water damage was caused by the contractor’s negligent construction activities.  In addition to...

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

by Kent Holland | Jun 7, 2011 | Newsletter Article

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...

Additional Insured Contractor’s Right to be Defended & Incorporation of Prime Contract Indemnity Obligations into the Subcontract

by Kent Holland | May 23, 2011 | indemnification clause, Newsletter Article

Two employees of a subcontractor sued the prime contractor for their personal injuries resulting from a fall.  The prime contractor in turn sued the subcontractor and the subcontractor’s insurance carriers for breach of a duty to defend and indemnify the contractor in...

Faulty Workmanship Coverage Under CGL Policy

by Kent Holland | Feb 9, 2011 | Newsletter Article

Costs of ripping out and replacing defective work was held to be potentially covered as property damage under a CGL policy issued by Zurich American Insurance, where employees of the insured contractor caused a leak in steam pipes by improperly unpacking the pipe...

Mold Loss Excluded Under Homeowner’s Policy – Summary Judgment for Carrier

by Kent Holland | Feb 9, 2011 | Newsletter Article

A homeowner’s suit against Lexington Insurance Company to recover under a property policy for damages caused by shoddy roofing work that resulted in mold contamination was dismissed based on a coverage exclusion for mold. The insurance policy covered any risks of loss...
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