A Jan. 9, 2004 decision by the Wisconsin Supreme Court held that standard commercial general liability (CGL) policies cover accidents caused by defective construction. Wisconsin’s high court reversed the decision of an appeals court. It ruled that a contractor was without general liability coverage for millions of dollars of damages that resulted when a building foundation for a warehouse sank and rendered the warehouse unsafe for occupancy. The appeals court had reasoned that accidents caused by defective construction are never covered by common CGL policies issued to contractors because the policies excluded “contractually assumed liabilities.”
Topics Legislation Contractors
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