Parsing the GL Exclusion of Coverage for “Your Work”

Another state has joined the group of states that parse a common GL exclusion to allow coverage to remedy non-defective work damaged by defective work. The Supreme Court of New Hampshire just issued its decision, in the case of Cogswell Farm Condominium Association v. Tower Group, Inc., 2015 N.H. LEXIS 3 (Jan. 13, 2015). The exclusion at issue bars coverage for property damage to “[t]hat particular part of any property that must be restored, repaired or replaced because ‘your work’ was incorrectly performed on it.” The argument was whether “your work” applied to all work of the general contractor (whose insurance coverage was in contention), or only the defective work. The NH court came out on the side of applying the exclusion only to the defective portion of the work, thus allowing coverage for the non-defective work damaged by the defective work. Cases cited by the carrier – at least, those noted in the decision – to apply “your work” to all aspects of construction were from Colorado, Mississippi and South Carolina. Cases cited by the condo association arguing a more narrow interpretation of “your work” were from Montana, Massachusetts and Ohio.

About Stan Martin

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Stan Martin holds a law degree and an undergraduate degree in architecture. He has been involved with the construction industry for more than 45 years, working in construction prior to law school and beginning his construction law practice. Over the course of his career, he has served on boards and committees for organizations including the Associated General Contractors of Massachusetts, the Boston Society of Architects, and the Massachusetts Building Congress.

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