Builders' Coverage Doubts Deepened By NY High Court Ruling

By Jeff Sistrunk (March 29, 2018, 5:10 PM EDT) -- In recently holding that a construction manager doesn't qualify as an additional insured under a contractor's policy because the two companies don't have a direct contract, a split New York high court has compounded uncertainty among builders about the requirements to secure the critical coverage, attorneys say.

In a 5-2 opinion upholding an appellate decision, the New York Court of Appeals ruled that the construction manager, a joint venture between Gilbane Building Co. and TDX Construction Corp., is not an additional insured under prime contractor Samson Construction Co.'s commercial general liability policy with Liberty Insurance Underwriters. The joint venture had sought...

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