Insurer Ducks $1.7M Payment Over Poor Construction Claims

By Ganesh Setty (February 14, 2022, 10:07 PM EST) -- A Pennsylvania federal judge ruled Monday that Main Street America Assurance Co. has no coverage obligations to a homebuilder or its subcontractor for $1.7 million in costs stemming from claims of shoddy work brought by the owners of 34 homes.

A federal judge ruled that an insurer has no coverage obligations for claims brought by the owners of 34 homes who are making accusations of shoddy workmanship. (AP Photo/Tony Gutierrez)

Defective construction is not an occurrence under the commercial general liability, or CGL, policy that Main Street issued to subcontractor Howard Lynch Plastering Inc. and that listed homebuilder W.B. Homes Inc....

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