# Construction Claims Still Impact Insurers 

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In 1999, several specialty insurers reported increases in loss reserves resulting from construction defect litigation. While a California Supreme Court ruling regarding pollution liability claims gave rise to the first wave of claims for construction defect liability losses, a more recent appellate ruling triggered another wave of claims.

As a result, many general liability insurers that wrote construction business in California are continuing to report high levels of new claims for construction defect losses.

The 1995 California Supreme Court ruling in Montrose Chemical Corp. v Admiral Insurance Company changed the coverage trigger for pollution liability claims to include all policies in effect during the period of continuous property damage, even those that were issued before the damage first appeared.