Defective Work by Flooring Subcontractor that Causes Damage to Work of other Subcontractors on the Flooring Subsystem Covered by CGL Policy

A commercial general liability (CGL) policy insurance carrier sought declaratory judgment that it owed no duty to defend or indemnify a subcontractor that was insured under the policy for damages allegedly caused by the subcontractor’s concrete slab work for a...

Subcontractor Failure to do Soil-Compaction Testing was Covered by General Contractor’s CGL Policy as an Occurrence that Caused Damages to Building

Where a subcontractor failed to conduct soil-compaction testing before construction, the house that was built on non-compacted soil sustained settlement damage. The homeowners sued both the general contractor (GC) and subcontractor for damages. The GC tendered the...

Construction Manager is not Additional Insured under Contractor’s CGL policy Despite Owner/Prime Contract Requiring Contractor to Name CM as Additional Insured

A construction contract between a contractor and project owner required the contractor to name the construction manager (CM) as an additional insured under its commercial general liability (CGL) policy. A sample additional insured endorsement with the CM’s name typed...

CGL Coverage for Consequential Damages to Condo Resulting from Rain Intrusion Allegedly Caused by Subcontractor’s Work

A condominium complex sustained consequential damages resulting from rainwater infiltration from roof leaks and leaking windows, due to alleged defective work of a construction subcontractor. The condo association filed suit against the prime contractor, among others,...

CGL Policy Held to Cover Costs of Correcting SubContractor’s Defective Work Including the Work Itself

Gail S. Kelley, P.E., J.D. ConstructionRisk, LLC After discovering various defects in their home, the homeowners filed suit against their builder. The builder’s insurance company declined to defend the action (“the underlying action”) on behalf of builder, alleging...

Unrelated Errors Entitle Architect to Full Coverage for Each Independent Claim

By J. Kent Holland, Esq. ConstructionRisk Counsel, PLLC A project was delayed because the Architect’s plans erred in their steel quantity estimate, and in the specifications for the structural steel girts and exterior façade.  The project owner sent a demand letter to...

EIFS Repairs Covered without Insurer’s Consent

 J. Kent Holland Jr. and James Rhodes The Texas Supreme Court affirmed a jury verdict in favor of a construction company against its insurer regarding the company’s voluntary remediation efforts to fix water damage at over 400 homes that it had built. The damage...