Words Matter: Series Of Leaks Constitutes Single Occurrence Under Policy Language

In a recent decision from the United States District Court for the Middle District of Florida, Tampa Division, styled KT State & Lemon, LLP et al. v. Westchester Fire Ins. Co. et al., the Court granted summary judgment to the Plaintiffs and held that a series of leaks occurring over a three-month period constituted a single ‘occurrence’ under a specific Builder’s Risk Policy.

Westchester Fire Insurance Company and North American Capacity Insurance Company issued a policy for a mixed-use residential and commercial construction project in Sarasota, Florida.

The policy originally provided coverage through November 30, 2019, with a $50,000.00 ‘per occurrence’ deductible. The parties negotiated an extension of coverage through January 30, 2020, but with a $250,000.00 ‘per occurrence’ deductible. The series of events overlapped those two policy periods.

The plaintiff general contractor hired a third party to install and test the fire suppression sprinkler system for the project.