Insurance
The Illusion of Coverage Under a Builder’s Risk Policy
August 12th, 2020
The policy didn’t exactly say “all damages are covered unless caused by a peril that is excluded” and “all damages are excluded unless caused by a peril that is covered ” But that description isn’t very far off. And a contractor’s actio…
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Separation of Insured Clause Strikes Again to Deny Coverage
July 22nd, 2020
A very recent blog discussed the effect of a separation of insured clause, on the scope of general liability coverage for an additional insured, when a personal injury claim is pursued by an injured worker. A federal court judge has just reached the…
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Insurance Exclusion Negates Additional Insured Coverage
July 8th, 2020
So you think your additional insured status as a GC provides protection against claims by your sub’s injured workers? Think again. General contractors commonly require subs to include the GC as an additional insured party on the sub’s general lia…
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Owner’s Property Insurer Could Pursue GC and Sub for Repayment
June 2nd, 2020
A waiver of subrogation clause is common in construction contracts, relative to property or builder’s risk insurance. It is not just a risk allocation tool, but an insurance risk allocation tool. When there is no waiver of subrogation, does other l…
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One-Year Limitations Period Enforceable for Insurance Policy Claims
December 19th, 2019
In what may seem to many as a harsh decision, the New Hampshire Supreme Court has upheld a one-year limitations period in an insurance policy. The insurance carrier and insured homeowners were in contact soon after the loss. The carrier did some inve…
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Duty to Defend Enforceable Even if Duty to Indemnify is Unresolved
December 6th, 2019
A Connecticut court, applying plain language in a subcontract, has held that the sub must defend the general contractor in an injured worker lawsuit, even if the sub’s obligation to indemnify the GC is not yet established. The worker was employed b…
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Failure to Promptly Reserve Rights on Coverage = Loss of Ability to Disclaim
October 2nd, 2018
From the 2nd Circuit Court of Appeal comes a reminder that undertaking defense of a claim without any reservation of rights can bar an insurer from disclaiming coverage nine months later – even if the claim was not within the policy language from t…
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Rental Agreement Indemnity – A Setback for Rental Companies
April 27th, 2018
Readers of this blog know that the terms and conditions in equipment rental agreements favor the rental company. Those agreements typically have one-sided indemnity clauses, on the basis that the rental company expects the renting contractor to carry…
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Unfortunate (and Unexpected) Restriction on Additional Insured Status
March 28th, 2018
The New York Court of Appeals, in a split decision, has focused on one word in deciding that a owner’s construction manager was not entitled to additional insured status on the general contractor’s policy. The contract required the GC to include…
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When Will We Learn? Contracts Do Not Modify Insurance Policies
October 18th, 2017
A subcontract required the second-tier sub to include the project owner and general contractor as additional insured parties. But the second-tier sub’s insurance policy had a “privity endorsement,” which allows additional insured status only fo…
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