Despite Builder Wins, Insurers Won't Mess With 'Occurrence'

By Bibeka Shrestha (April 11, 2013, 6:30 PM EDT) -- In an about-face, the North Dakota Supreme Court recently quashed a controversial, six-year-old precedent and held that liability policies can indeed cover faulty construction that damages a policyholder's product, but attorneys say insurers will remain reluctant to rebel against such decisions by changing their definitions of "occurrence."

Against the wishes of its chief justice, the state high court backtracked from its 2006 ruling in Acuity v. Burd & Smith Construction, which established that a commercial general liability policy covers faulty work only when it causes injuries or property damage to something outside of the policyholder's work product.

The North Dakota Supreme...

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