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Analyzing Coverage For Construction-Defect Liability

Law360 (February 8, 2011, 2:21 PM EST) -- Courts across the country struggle with whether commercial general liability insurance policies cover claims against contractors for faulty construction. Some have analyzed the standard provisions in a CGL policy and applied the coverage properly, consistent with well-known insurance concepts.

Others have been confused by provisions such as the so-called business risks exclusions or by the concept of a covered “occurrence,” and have confirmed the denial of otherwise covered claims. Recently, a New Jersey Superior Court judge joined the former group, concluding that a contractor’s CGL policy...
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