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Expert Analysis

'Faulty Workmanship' Exclusion May Result In Coverage

Law360, New York (February 5, 2014, 6:04 PM EST) -- On Jan. 17, 2014, a panel of the United States Court of Appeals for the Ninth Circuit held that omission of a "faulty workmanship" exclusion to the general form language of an "all risk" marine builder's risk policy created a genuine dispute as to the parties' intent regarding coverage of the $1.2 million cost of repairing the faulty work.[1] In so doing, the Ninth Circuit reversed the district court's finding that, as a matter of law, the plain policy language provided no coverage for the cost to correct faulty workmanship....

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