Mich. Justices Say Faulty Contract Work Covered By Policy

Law360 (June 30, 2020, 10:37 PM EDT) -- Amerisure Insurance Co. may have to pay a $1.4 million repair cost claim after the Michigan Supreme Court reversed a lower court decision and ruled that faulty subcontractor work that damages a policyholder's work product is an "accident," and therefore may be covered, under a commercial general liability policy.

In the court's opinion on Monday, Chief Justice Bridget M. McCormack said the Court of Appeals erred when it reversed a Michigan trial court's decision and asked that court to rule in favor of Amerisure. The state Supreme Court remanded the case back to the appeals court, holding that defective subcontractor work...

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