Tag Archives: Construction Defect

Known Injury or Damage Exclusion not Applicable in Case of Continuing and Progressive Water Infiltration Resulting from Defective Construction


I recently posted an article, CGL Coverage:  “Known Injuries or Damages” in Minnesota and Beyond”, addressing the “Known Injury or Damage” provision in CGL policies.  In August 2014, the Connecticut Supreme Court addressed the provision in the context of a … Continue reading

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Insurance: Known Injuries or Damages


By Greg Johnson. There has been a tremendous amount of construction defect litigation in Minnesota over the past fifteen years which has had a major impact on both the construction and insurance industries. In an effort to slow the tide, … Continue reading

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Insured’s Investigation and Overhead Expenses Not Covered by Policy


Every once in awhile a policyholder asks whether the costs it incurred in addressing a third-party property damage claim, such as inspection costs, personnel costs, overhead costs and attorneys’ fees are covered by its Commercial General Liability (“CGL”) policy.  Unless the costs qualify … Continue reading

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Insurance: Economic & Intangible Losses (Lost Profits, Idle Time, Increased Overhead, Liquidated Damages, Diminution in Value & Suppressed Rentals, Etc.


Faulty workmanship can produce several different types of injuries in addition to the typical claim involving physical injury to other property. Faulty or defective work can cause, and contractors may be confronted with claims alleging, numerous types of economic and … Continue reading

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CGL Coverage:”Your Work” Exclusion Comes Full Circle — Deletion of Subcontractor Exception


By Greg Johnson. It’s back to square one for some residential contractors. In Grinnell Mutual Reinsurance Co. v. Wollak Construction, Inc., Civ. File No. 10-350 (RHK/LIB) (D. Minn. 10/15/2010), the federal district court, applying Minnesota law, held that the “your … Continue reading

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CGL Coverage: Latent Defects and Continuous, Progressive or Recurring Damages (Allocation of Liability)


By Greg Johnson. Which CGL policy (or policies) will apply in a property damage claim involving continuing, progressive or recurring damages?  Whether the underlying claim is one of environmental liability, asbestos, construction defect or products liability, claims involving damages which extend … Continue reading

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Subcontractor Liable for General Contractor’s Pre-Notice Defense Fees


Many states recognize that a liability insurer is not obligated to pay for the defense of a claim until it is notified of the suit. See, e.g., Home Ins. Co. v. National Union Fire Ins. of Pittsburgh, 658 N.W.2d 522, … Continue reading

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