Does general liability insurance provide coverage for construction defects? A comprehensive general liability (CGL) policy covers potential liability for property damage caused by an occurrence such as an accident or accidental harm. When it comes to construction defect coverage, courts are divided on “occurrence” and whether coverage is available for construction defects or not.
Some believe construction defects and the damage caused from the defects are not covered under liability insurance because it wasn’t the result of an “accident” or “occurrence.” An analysis of this says that construction defects are the natural consequence of poor workmanship and liability insurance does not protect against this. Courts and states say CGL policies are not performance bonds and insurers aren’t guarantors of work.
Other states and courts find faulty workmanship as an “accident” so it becomes an “occurrence.” They believe the resulting damage is covered because it was fortuitous and unintended
Some states have passed legislation that says faulty work is an occurrence under CGL policies.
It goes by a state-by-state basis whether construction defects are considered an occurrence under CGL. There is still disparity between states. Different thought processes are that defective work is an occurrence; property damage to other property, including non-defective work, is an occurrence; damage to third-party property from defective work is an occurrence; and defective work is not an occurrence.
The construction defect defined as an occurrence is still a big debated issue year after year.
As a California construction defect law firm, we know how this state rules on the subject and we will know what you’re up against in court.
Need a Construction Defect Attorney in California?
If you are a homeowner or association seeking representation in construction defect litigation, our law firm based in San Diego can help represent you. Along with San Diego, we work with clients in Los Angeles, Orange County, Riverside, San Bernardino.
We have more than 35 years of experience handling and winning all types, including difficult, construction defect cases. To contact us, call 844-492-7474 or visit our San Diego construction defect contact page.
To learn more about California construction defects and the construction defect litigation process, click our San Diego construction defect litigation page
