Insurance

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

by David R. Cook Jr.
September 3, 2013

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

Ga. Supreme Court Interprets Intent and Scope of Atlanta’s OCIP

by David R. Cook Jr.
November 28, 2012February 14, 2022

Read the opinion here: Case – ArcherWestern v Pitts

Construction owners occasionally use an Owner Controlled Insurance Program (OCIP) to insure personal and property damage on their projects. The Georgia Supreme Court recently interpreted the City of Atlanta’s OCIP for construction of the Hartsfield-Jackson Atlanta International Airport. After a sub-subcontractor’s employee was killed on the project, his estate sued the City of Atlanta and several contractors, alleging that they failed to ensure the subcontractor at fault maintained the level of insurance required by the OCIP program. Instead of the required $10,000,000 in bodily-injury coverage, the subcontractor at fault maintained only $1,000,000 in coverage. Read More »Ga. Supreme Court Interprets Intent and Scope of Atlanta’s OCIP

No GIRMA Coverage for Subcontractor Claim

by David R. Cook Jr.
October 24, 2011September 11, 2022

The Georgia Court of Appeals recently held that claims against municipal governments by subcontractors are not covered by GIRMA’s risk management policy due to the exclusion for breach-of-contract claims.