Tips in Evaluating Coverage for Construction Defect Claims

Construction activity exploded in 2015, and analysts predict that 2016 will be another strong year for the industry. While this is positive news, more new construction means more construction defect litigation. So if you’re a contractor, subcontractor, landowner, or developer, it’s critical that you are properly evaluating and managing these risks.

Faced with construction defect claims, companies will likely look to their commercial general liability (CGL) policies for help. And if they make a claim against their policy, there’s a fair chance that their insurer will deny coverage. Indeed, whether CGL insurance covers property damage arising from construction defects remains a hotly-contested issue across the country. And in Ohio, coverage disputes have become more frequent due to court decisions ostensibly limiting a contractor’s ability to obtain coverage for defective work.

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