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Insurance Coverage for Damages Arising from Defective Construction

Posted By David R. Cook Jr., Autry, Cole, Hanrahan, Hall & Cook, LLP, Thursday, March 20, 2014
One of the first considerations of most attorneys is whether insurance coverage is available to remedy their client's loss or potential loss. Yet many attorneys are unaware that commercial general liability (CGL) insurance policies may provide coverage for property damage and personal injury arising from defective construction. And such coverage is not limited to losses incurred by property owners - it may be available for other contracting parties as well. 

Perhaps the reluctance to consider CGL coverage arises from older cases - especially federal court cases - that narrowly interpreted CGL policies' coverage for losses arising from defective construction. Older cases of Georgia state courts provided conflicting and confusing guidance about such coverage. More recently, however, the Supreme Courts of several states, including Georgia, have begun a concerted effort to clarify the law in this area. While these cases are clearly favorable for litigants seeking coverage, the courts continue to emphasize that the analysis requires a careful consideration of the language of CGL policies and applicable endorsements. 

Tags:  cgl  commercial  coverage  general  insurance  liability  policies 

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