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Ohio Top Court Nixes Easy Path On Building Defect Coverage

Law360 (October 15, 2018, 7:52 PM EDT) -- Construction companies working in Ohio must specifically ensure their insurance policies cover subcontractors’ defective work after the state’s high court recently dashed any hope of the Buckeye State falling in line with other states where a subcontractor’s bad work is covered by standard insurance policies.

The Ohio Supreme Court’s decision last week in Ohio Northern University v. Charles Construction Services Inc. kept the state as one of a handful that maintain defective work done by subcontractors isn’t an “occurrence” for insurance coverage purposes under Ohio law. Property damage is only covered by commercial general liability policies if it’s caused by an...

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