Evolution Of Coverage For Construction Defect Claims

Law360, New York (May 17, 2012, 1:42 PM EDT) -- A recent decision from the New Jersey Appellate Division appears to confirm that the “continuous trigger” theory of insurance coverage applies to latent and progressively construction defect claims. The opinion also highlights the pitfalls associated with settling complex disputes in a piecemeal fashion, particularly with respect to the claims released and the indemnification provided.

In Potomac Ins. Co. v. Pennsylvania Mfr’s Assoc. Ins. Co., Docket No. A-3164-09T2 (App. Div., April 13, 2012), a school building contractor was sued over allegedly continuous water intrusion, which commenced at...
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