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: RE: RE: Myth that the CGL is not a Warranty or Bond
Posted On: May 28, 2008, 4:56 pm CDT
Posted By: JLP
Comment:
Actually, take a look at Texas Supreme Court decision Lamar Homes v. Mid-Continent Casualty where they found, among other things, that unintended construction defects may constitute an occurrence under the GL policy. Other states' (see Florida) have also gone down a similar path in the past 18 months. The Texas Court also specifically rejected the carrier's argument that finding coverage would transform the GL policy into a performance bond. I know this is one state, but we can't say that poor work will never be an occurrence because in some cases it might.
Subject: RE: RE: Myth that the CGL is not a Warranty or Bond