CGL Extends Coverage for Injury Arising from Defective Construction
National News • May 28, 2008
Property damage resulting from defective construction is unquestionably excluded in the commercial general liability policy; but what about bodily injury? And is injury or damage caused by the ...
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Subject: Myth that the CGL is not a Warranty or Bond
Posted On: May 28, 2008, 3:41 pm CDT
Posted By: InsuranceGeek
Comment:
The claim that a CGL policy is not a warranty or a bond is largely a myth perpetuated by pundits and courts with disregard to the contract language.
Other than some losses involving the impaired property exclusion, there is nothing in the ISO CGL policy that says it is not a bond or warranty. In fact, "your work" is defined to include warranties:
"Your work":
a. Means:
(1) Work or operations performed by you or on your behalf; and
(2) Materials, parts or equipment furnished in connection with such work or operations.
b. Includes
(1) Warranties or representations made at any time with respect to the fitness, quality, durability, performance or use of "your work", and
(2) The providing of or failure to provide warnings or instructions.
All that matters is the coverage trigger (mainly BI or PD caused by an occurrence during the policy period) and the exclusions.
Subject: Myth that the CGL is not a Warranty or Bond
Other than some losses involving the impaired property exclusion, there is nothing in the ISO CGL policy that says it is not a bond or warranty. In fact, "your work" is defined to include warranties:
"Your work":
a. Means:
(1) Work or operations performed by you or on your behalf; and
(2) Materials, parts or equipment furnished in connection with such work or operations.
b. Includes
(1) Warranties or representations made at any time with respect to the fitness, quality, durability, performance or use of "your work", and
(2) The providing of or failure to provide warnings or instructions.
All that matters is the coverage trigger (mainly BI or PD caused by an occurrence during the policy period) and the exclusions.