In 2015, Hall County (Georgia) brought legal action against Selective Insurance Company of America, Inc., the surety company for contractor Ruby Forrest. Hall County had… Read More »Georgia appellate court supports county claim against surety company’s failure to pay
Two Savannah homeowners filed a complaint against a local air conditioning contractor and its insurer, asserting claims of professional negligence and fraud. The couple alleged… Read More »Savannah homeowners win sizable judgment in mold case against HVAC contractor
Additional Insured Denied Recovery Under Commercial General Liability Policy For Costs Sustained Repairing Defective Construction and Resulting Property Damage
In Auto Owners Insurance Co. v. Gay Construction Co., a general contractor brought a claim as an additional insured under a sub-subcontractor’s commercial general liability… Read More »Additional Insured Denied Recovery Under Commercial General Liability Policy For Costs Sustained Repairing Defective Construction and Resulting Property Damage
The Atlanta Bar Litigation Section recently published an article written by Autry Cole attorney David Cook regarding insurance coverage for damages arising from defective construction. … Read More »Insurance Coverage for Damages Arising from 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
In a prior post, we discussed a Georgia Supreme Court opinion interpreting Atlanta’s OCIP policy. The case at issue was remanded to the Georgia Court… Read More »Failure to Procure Contractually Required Insurance Can Be Disastrous
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
AHC attorney David R. Cook will speak at the Association of Energy Engineers’ GlobalCon 2012 conference in Atlantic City. He will discuss issues related to… Read More »AHC Attorney David Cook to Present on Energy Savings Projects at GlobalCon 2012 Energy Conference
Owners and Contractors Beware: Policy Endorsement Diminishes Commercial General Liability Coverage for Defective Construction
Construction-industry clients may be surprised to discover that a recent endorsement to the ISO form Commercial General Liability (“CGL”) policy eliminates insurance coverage for property damage that is caused by defective work performed by subcontractors.
This article was written by David R. Cook and Mark V. Hanrahan.