Construction Defect Claims as Occurrences

The Journal of Insurance and Indemnity Law, Vol. 4, No. 1, p. 3, 2011

3 Pages Posted: 13 May 2011

Date Written: January 1, 2011


This article examines the law regarding coverage of faulty construction claims made by owners and others against contractors under the Commercial General Liability (CGL) policy. This article explains the meaning of occurrence, accident, property damage and business risk exclusions, as interpreted by the courts. The insured can guard against the high percentage of risk but he cannot guard against risk itself. The purpose of this article is to provide guidance and an advance starting point for practitioners on construction claims. Coverage is examined in the context of claims against contractors for their own negligent work and that of their subcontractors. If the contractor's work is pure negligence (substandard performance) and nothing more the claims will not be covered by the contractor's liability policy. An insurance contract is not a performance bond or any type of construction malpractice contract.

Keywords: CGL Policy, Construction Defect Claims, Occurrence, Accident, Property Damage, Exclusions

Suggested Citation

Johnson, James A., Construction Defect Claims as Occurrences (January 1, 2011). The Journal of Insurance and Indemnity Law, Vol. 4, No. 1, p. 3, 2011, Available at SSRN:

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