Confusion over construction defect liability spawns legal battles (Business Insurance)

Confusion over construction defect liability spawns legal battles

  Monday, November 14th, 2011 Source: Business Insurance

Four states recently have passed statutes defining construction defect claims as occurrences, but commercial general liability policyholders continue to be frustrated by coverage gaps for faulty work construction. Although incongruous court decisions over whether construction defect claims are covered under CGL policies continue to drive uncertainty in coverage and increase litigation costs, a unique trend among states may take the battle out of the courts, experts say.

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