Do Defect Notice Letters Trigger The Duty To Defend?

By Elliotte Quinn IV (October 17, 2017, 1:19 PM EDT) -- A developing area in the law of insurance coverage for construction defects is whether a contractor's commercial general liability ("CGL") carrier is obligated to defend the contractor when the contractor receives a notice of alleged construction defects under a notice and opportunity to repair statute. Over the past few decades, the majority of American states enacted what are known as notice and opportunity to repair statutes. The statutes provide that prior to filing an action in court, a homeowner must provide notice of the claimed defects to the contractor, permit the contractor to inspect the property and engage in negotiations. While there are some variations among the statutes, they generally all have these requirements....

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