Variations Among States Regarding Defective Workmanship as Occurrence

Originally published by Ana Reis.

Whether construction defects are occurrences under Commercial General Liability (“CGL”) insurance policies is an issue that has been highly litigated in recent years. A review of cases from various states discloses that courts have been divided both in the way they decide and analyze this issue.
Historically, it was well settled throughout the country that defective workmanship was not a covered occurrence under a CGL policy of insurance. However, many courts throughout the U.S. have re-examined this precedent and have begun a new trend by finding that defective workmanship can, in fact, be an occurrence. The problem is that not all states have reached the same conclusion and have therefore created a patchwork of inconsistent results and analyses which differ from state to state. For those of us in the insurance industry, this results in a tedious task of determining which states follow which trend.

And as described by Christopher C. French’s article, Construction…

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