'Business Risk' Exclusions In CGL Policies

Law360, New York (February 3, 2009, 12:00 AM EST) -- A recurring dispute between insurance companies and Commercial General Liability (“CGL”) policyholders concerns whether CGL policies provide coverage for construction defect claims.

In its recent decision in Mid-Continent Casualty Co. v. JHP Development Inc., No. 05-50796 (Jan. 28, 2009), the Fifth Circuit takes the latest step in Texas jurisprudence on the issue, concluding that the “business risk” exclusions in such policies, at least as currently drafted, do not exclude coverage for damage to a contractor’s non-defective work even if caused by his own defective work....
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