Business Risk Exclusions

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   Applying Colorado law, the Tenth Circuit found a duty to defend construction defect claims where the faulty workmanship was unintentional. Greystone Const. Inc. v. National Fire & Marine Ins. Co., 661 F.3d 1272 (10th Cir. 2011). A prior post [here] discussed the Tenth Circuit's certified question to the Colorado Supreme Court…

   The court determined that the Faulty Workmanship Exclusion only barred coverage for damages arising from problems with the property under construction itself and not to losses incurred to correct damage from accidents during construction. See 1756 First Associates, LLC v. Continental Casualty Co., 2011 U.S. Dist. LEXIS 117100 (S.D.N.Y. Oct. 3, 2011).

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   Application of the facts to the "your work" exclusion was the key to resolving coverage issued in Am. Home Assurance Co. v. Cat Tech L.L.C., 2011 U.S. App. LEXIS 21076 (5th Cir. Oct. 5, 2011).

   Ergon Refining, Inc. hired Cat Tech L.L.C. to service a hydrotreating reactor. In January 2005, Cat Tech replaced certain parts…

Although the court determined there was an occurrence, coverage was excluded by the business risk exclusions. See Cont'l W. Ins. Co. v. Shay Constr. Co., 2011 U.S. Dist. LEXIS 82839 (D. Colo. July 28, 2011).

White was the general contractor on the project. White had three subcontracts with Shay to provide framing, siding, and…

   Coverage for damage caused by the installation of Chinese drywall was the issue in Dragas Mgt. Corp. v. Hanover Ins. Co., 2011 U.S. Dist. LEXIS 80178 (E.D. Va. July 21, 2011).

   Dragas built housing developments. Dragas hired Porter-Blaine Corp. to supply and install drywall for the homes in two of its developments.

   The homeowners hired the insured to raise the structure of their home twenty-four inches above the flood zone. Lafayette Ins. Co. v. Peerboom, 2011 U.S. Dist. LEXIS 58985 (S.D. Miss. June 2, 2011). When the insured's crew returned from lunch one day, they found the house had fallen from hydraulic jacks being used…

   Sorting out whether the contractor had coverage for alleged construction defects under the subcontractor's policies was the issue in Travelers Cas. and Sur. Co. v. Dormitory Auth., State of New York, 2010 U.S. Dist. LEXIS 79024 (S.D. N.Y. July 30, 2010).

   Trataros Construction, Inc. was the general contractor on the project.  Trataros contracted…

    Exclusions (k) and (m) in comprehensive general liability policies were the focus of a recent decision from the First Circuit.  See Essex Ins. Co. v. BloomSouth Flooring Corp., No. 06-2750, 2009 U.S. App. LEXIS 7896 (1st Cir. April 16, 2009) [here]. 

    Boston Financial Data Services (BFDS) hired Suffolk Construction Corporation as general …