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Insurance Coverage

Georgia Supreme Court Resolves An Important CGL Coverage Issue for Defective Construction

By answering a certified question from the Eleventh Circuit Court of Appeals, the Supreme Court of Georgia resolved a long-standing dispute regarding CGL insurance coverage for damages arising from an insured contractor’s defective construction.  The issue was fairly narrow because it related to the “occurrence” requirement in standard CGL policies.  The federal court asked whether a standard CGL policy’s requirement of an “occurrence” can be satisfied when the damaged property at issue was solely the contractor’s work? Read More »Georgia Supreme Court Resolves An Important CGL Coverage Issue for Defective Construction

Construction Industry Still Unaware of Potential CGL Coverage Related to Faulty Workmanship

A recent Georgia case illustrates that many in the construction industry still believe that CGL insurance policies exclude coverage for defective construction – a belief that resulted in loss of coverage for one contractor.  The court affirmed that, “while construction defects constituting a breach of contract are not covered by [CGL] policies, negligently performed faulty workmanship that damages other property may constitute an ‘occurrence.’”

Based on a mistaken belief of no coverage, a contractor failed to provide timely notice to its insurance carrier.  As a result, the court dismissed the CGL insurer from the case, leaving the contractor (and the owner) without insurance coverage for substantial damages. Read More »Construction Industry Still Unaware of Potential CGL Coverage Related to Faulty Workmanship