Coverage for Construction Defect Claims May Hinge on a Clearly Defined Scope of Work

As written for the American Bar Association
By P. Wesley Lambert, Attorney, Litigation practice group and JoZeff W. Gebolys, Attorney, Litigation practice group, Brouse McDowell, LPA

Over the past several years, decisions from the highest courts in several states have given some clarity to policyholders who have long attempted to determine whether their exposure to construction defect claims is covered by their standard CGL policies. These decisions have almost uniformly hinged on whether the deciding court believes that the particular construction defect, and resulting damage, fall within the definition of an “occurrence,” or qualify as “property damage” arising from an occurrence, as those terms are used in the standard CGL policy.