Commercial Liability Articles

Subcontractor Performance Risk

Recruiting and Training the Construction Workforce of Tomorrow

2023-02-03 | Cheri Hanes

Look beyond traditional hiring methods to find and keep new workers. Cheri Hanes explains.

Subcontractor Performance Risk

Recruiting and Training the Construction Workforce of Tomorrow

2023-02-03 | Cheri Hanes

Look beyond traditional hiring methods to find and keep new workers. Cheri Hanes explains.

Liability Insurance

Coverage Challenges in CGL Insuring Agreements

2023-01-20 | Craig F Stanovich

Craig Stanovich clarifies some of the trickiest commercial general liability (CGL) provisions, including loss scenarios to help illustrate and clear up common confusion.

Liability Insurance

The Auto Exclusion in the CGL Policy

2022-09-01 | Craig F Stanovich

Craig Stanovich explains how it is designed to eliminate coverage for bodily injury or property damage customarily covered by a commercial auto policy.

Subcontractor Performance Risk

Green Building Means Go

2022-08-05 | Cheri Hanes

Many contractors have been on hold when it comes to sustainable construction. Cheri Hanes offers support for your journey to a greener future.

Liability Insurance

Do Trade Names Limit CGL Coverage?

2022-07-22 | Craig F Stanovich

Craig Stanovich relates a recent Massachusetts case that appears to restrict named insured coverage.

Liability Insurance

Effects of the Russia-Ukraine Conflict on Construction Supply Chains

2022-03-17 | Cheri Hanes

The war will impact the supply of raw materials, transportation, and manufacturing worldwide. Cheri Hanes offers subcontractor strategies.

Liability Insurance

Subsidence Exclusion in the CGL Policy

2022-03-16 | Craig F Stanovich

Courts are divided as to the application of this provision. Craig Stanovich looks at the case law.

Subcontractor Performance Risk

Myths about Causes of Subcontractor Defaults

2022-01-19 | Cheri Hanes

Subcontractor default causes are not as obvious as you might think. Cheri Hanes examines eight common misconceptions.

Design and Professional Liability

2022 Contractor's Professional Liability Market Trends and Challenges

2022-01-12 | Jeff Slivka

Jeff Slivka predicts changes in market conditions, coverage nuances, and delivery methods this year.

Liability Insurance

Auto versus Mobile Equipment in the CGL

2021-12-01 | Craig F Stanovich

Craig Stanovich helps you determine whether the business auto or commercial general liability policy applies to mobile equipment and auto claims.

Subcontractor Performance Risk

Subcontractor Qualification for Challenging Times

2021-07-03 | Cheri Hanes

Cheri Hanes discusses subcontractors' internal changes, supply chain and escalation challenges, and changing project requirements.

Subcontractor Performance Risk

Managing Construction Cost Escalation

2021-05-07 | Cheri Hanes

Managing Construction Cost Escalation—In the wake of COVID-19 and bad weather, contractors and subcontractors need to communicate, reassess, and collaborate. Cheri Hanes explains.

Subcontractor Performance Risk

Thinking Inside the Box—Modular Construction Considerations

2021-02-24 | Cheri Hanes

Modular Construction Considerations—Successful projects have open collaboration, an understanding of potential risks, and agreement on ways to handle them, per Cheri Hanes.

Construction Defect Coverage

Defining and Fixing Construction Defects

2021-01-29 | Joseph M Junfola

Defining and Fixing Construction Defects—Getting down to fundamentals, Joseph Junfola examines why failures occur and what can be done.

Subcontractor Performance Risk

Project Pursuit Decisions—Play to Your Strengths

2020-11-25 | Cheri Hanes

Project Pursuit Decisions—Play to Your Strengths—In construction, begin with the end in mind and make reasonable cost and schedule commitments, advises Cheri Hanes.

Design and Professional Liability

Changing CPrL Marketplace: Expectations for 2021

2020-10-30 | Jeff Slivka

Changing CPrL Marketplace: Expectations for 2021—Rates are expected to rise for the first time in 10 years. Jeff Slivka explains why.

Construction Defect Coverage

Other Insurance and Allocation in Construction Defect Claims

2020-10-23 | Joseph M Junfola

Other Insurance and Allocation in Construction Defect Claims—Joseph Junfola discusses how property damage is allocated when multiple occurrence-based commercial general liability policies are triggered.

Liability Insurance

Commercial Umbrella—Exhaustion of the Underlying Insurance

2020-09-25 | Craig F Stanovich

Commercial Umbrella—Exhaustion of the Underlying Insurance—Craig Stanovich explains the importance of determining when and how the umbrella will attach.

Subcontractor Performance Risk

Strategies for a Challenged Supply Chain in the Wake of COVID-19

2020-07-31 | Cheri Hanes

Strategies for a Challenged Supply Chain in the Wake of COVID-19—Learn how to mitigate current risks and avoid or soften future impacts from Cheri Hanes.

Construction Defect Coverage

Beware the Stunted CGL: Breach of Contract Endorsements

2020-07-17 | Patrick J Wielinski

Beware the Stunted CGL: Breach of Contract Endorsements—While it may look standard, Pat Wielinski advises reading any CGL policy additions with care.

Construction Defect Coverage

Coverage Triggers for Construction Defect Claims

2020-07-10 | Joseph M Junfola

Coverage Triggers for Construction Defect Claims—Turning back to the basics, Joe Junfola reviews the definition, triggers, and application of such triggers.

Design and Professional Liability

Contractors Professional Liability in a COVID-19 Era

2020-07-03 | Jeff Slivka

Contractors Professional Liability in a COVID-19 Era—In construction projects, Jeff Slivka warns of the uncertainties and ramifications.

Liability Insurance

The Coronavirus and the CGL Policy

2020-06-12 | Craig F Stanovich

The Coronavirus and the CGL Policy—While coverage depends on the specific facts of the case, Craig Stanovich reviews the possibilities.

Subcontractor Performance Risk

Navigating Perilous Times in Construction

2020-04-17 | Cheri Hanes

Navigating Perilous Times in Construction—During uncertainty, Cheri Hanes recommends that you stay the course and keep sailing.

Subcontractor Performance Risk

Implementing SMART Risk Mitigation Plans

2020-01-31 | Cheri Hanes

Implementing SMART Risk Mitigation Plans—Cheri Hanes recommends matching risk management measures to specific risks and ensuring implementation.

Design and Professional Liability

The Dangers of OPPI Insurance

2019-12-13 | Jeff Slivka

The Dangers of OPPI Insurance—If you think OPPI insurance is "only excess insurance," you could be very wrong, warns Jeff Slivka.

Liability Insurance

The ISO Classification System and the CGL Policy

2019-11-08 | Craig F Stanovich

While ISO classification codes don't generally restrict CGL coverage, they can have an impact. Craig Stanovich explains.

Subcontractor Performance Risk

Tackling Subcontractor Performance Issues from the Ground Up

2019-10-25 | Cheri Hanes

Tackling Subcontractor Performance Issues from the Ground Up—Cheri Hanes provides strategies to enhance communication, strategies, and performance.

Design and Professional Liability

Dissecting the Contractors Professional Liability Policy

2019-09-06 | Jeff Slivka

Dissecting the Contractors Professional Liability Policy—Jeff Slivka says educated firms protect themselves with CPrL policies. Here's what you should know.

Subcontractor Performance Risk

Project Pursuit Decisions Affect Subcontracting Risk

2019-07-19 | Cheri Hanes

Project Pursuit Decisions Affect Subcontracting Risk—Taking these factors into consideration can result in better outcomes, per Cheri Hanes.

Liability Insurance

How the Limits Apply in the CGL Policy

2019-06-28 | Craig F Stanovich

Craig Stanovich updates his popular article explaining how CGL limits apply to the payment of claims.

Subcontractor Performance Risk

Subcontractor Operational Prequalification

2019-04-12 | Cheri Hanes

Subcontractor Operational Prequalification—Many contractors face challenges on the crucial, nonfinancial side of prequalification. Cheri Hanes explains.

Liability Insurance

The Hazards of Products and Completed Operations: Understanding the Fundamentals

2019-03-06 | Craig F Stanovich

Too little attention is paid to the basics of how products and completed operations coverage works within the context of the entire CGL policy. Craig Stanovich explains.

Subcontractor Performance Risk

Use the Results of Subcontractor Prequalification to Mitigate Risk

2019-02-01 | Cheri Hanes

Use Subcontractor Prequalification To Mitigate Sub-Performance Risk—Cheri Hanes warns against ignoring prequalification data.

Liability Insurance

Primary and Noncontributory

2018-12-14 | Craig F Stanovich

This term is usually an attempt to establish the priority of coverage and is not concerned with allocating percentages of fault, explains Craig Stanovich.

Liability Insurance

More Coverage Misconceptions of the CGL Policy

2018-09-21 | Craig F Stanovich

More Coverage Misconceptions of the CGL Policy—Craig Stanovich examines additional areas of coverage that are often misconstrued.

Liability Insurance

Some Common Coverage Misconceptions of the CGL Policy

2018-09-21 | Craig F Stanovich

The duty to defend, punitive damages, coverage for your work, completed operations, and an additional insured's sole negligence are some of the areas discussed by Craig Stanovich.

Design and Professional Liability

When Striking Contract Language Isn't Enough

2018-07-13 | Kenneth A Slavens

When Striking Contract Language Isn't Enough—Stricken language may make the contract silent. Ken Slavens relates a case on point.

Liability Insurance

What Does "Separation of Insureds" Mean—Part 1

2018-07-06 | W Jeffrey Woodward

Most liability insurance policies contain a 'severability of interests' condition, which stipulates that coverage applies 'separately' to each insured. This article, and the two to follow, examine coverage issues raised by this condition in the ISO CGL policy.

Liability Insurance

What Does "Separation of Insureds" Mean—Part 2

2018-07-06 | W Jeffrey Woodward

In this second article on the meaning of separation of insureds in the CGL policy, court interpretations of "the insured," "an insured," and "any insured" and their ramifications are discussed.

Liability Insurance

Faulty Work and the CGL

2018-06-22 | Craig F Stanovich

Faulty Work and the CGL—Craig Stanovich updates his popular treatise on whether faulty work can be covered by the CGL policy.

Liability Insurance

Contractual Liability and the CGL Policy

2018-04-27 | Craig F Stanovich

Contractual Liability and the CGL Policy—Craig Stanovich updates his treatiseon what is meant by contractual liability and how coverage actually works.

Liability Insurance

Commercial Umbrellas and the Demand for Primary and Noncontributory

2017-07-14 | Craig F Stanovich

Commercial Umbrellas and the Demand for Primary and Noncontributory -- Craig Stanovich examines the intent and problems.

Design and Professional Liability

Construction Specifications: Professional Liability Risk

2017-07-14 | Jeff Slivka

Construction Specifications: Professional Liability Risk -- Jeff Slivka highlights a potential area of professional risk for contractors.

Liability Insurance

Coverage Gaps Created by Exclusionary Endorsements

2017-04-13 | Craig F Stanovich

Craig Stanovich explains why some CGL endorsements may leave substantial gaps in general liability coverage.

Design and Professional Liability

Contractors Professional Liability (CPrL) Insurance—Rectification/Mitigation Enhancement

2017-03-31 | Jeff Slivka

Jeff Slivka discusses the growing CPrL market and the various options available.

Design and Professional Liability

New Owner's Design Warranty in Missouri

2017-03-17 | Kenneth A Slavens

Ken Slavens relates a recent Missouri case with significant implications for design professionals and owners.

Liability Insurance

Additional Insured Issues 2016—Part Two

2016-12-16 | Craig F Stanovich

Part 2 of this article discusses the effect of the ISO 2013 additional insured endorsement changes.

Liability Insurance

Additional Insured Issues 2016—Part One

2016-09-16 | Craig F Stanovich

The additional insured coverage issues surrounding the Insurance Services Office, Inc. (ISO), endorsements are always changing. Learn the history.

Construction Defect Coverage

Defective Work as Occurrence: "The Song Remains the Same"

2016-07-29 | Patrick J Wielinski

Recent case law on defective workmanship as occurrence is provided along with the corresponding unpredictability that has resulted.

Liability Insurance

Loss of Use as Property Damage

2016-06-17 | Craig F Stanovich

Loss of Use as Property Damage—Not all losses to or impairment of property is considered property damage. Craig Stanovich delves into the evolution and application of the term as it pertains to liability insurance.

Design and Professional Liability

Professional Liability Risk and the CMAR Delivery Method

2015-10-02 | Jeff Slivka

Jeff Slivka explains the importance of understanding the professional liability risks involved with this construction process.

Liability Insurance

Employers Liability Exclusion in the CGL Policy

2015-09-18 | Craig F Stanovich

Employers Liability Exclusion in the CGL Policy—The exclusion appears deceptively simple. Craig Stanovich explains why it is not.

Design and Professional Liability

Contractor Project Delivery Methods: Test Your Knowledge!

2015-07-10 | Jeff Slivka

Jeff Slivka offers a little quiz on the basics. Try your hand, and see how you do.

Liability Insurance

Pennsylvania Adopts "First Manifestation Rule" as the CGL Coverage Trigger

2015-07-03 | Craig F Stanovich

Confusing the occurrence with the resulting bodily injury or property damage results in wrongly decided insurance law, per Craig Stanovich.

Design and Professional Liability

Attorney Fee Award Approved Based on Incorporated AAA Rules

2015-05-15 | Kenneth A Slavens

This case has unwieldy implications for contracts where attorney fees were not intended. Ken Slavens explains.

Design and Professional Liability

Who Can Opine on the Design Professional's Standard of Care?

2015-01-31 | Kenneth A Slavens

What makes one an expert? Ken Slavens looks at a recent New Jersey case that examines the like-licensed requirement.

Design and Professional Liability

Mold and Professional Liability Insurance

2015-01-01 | Jeff Slivka

Does the typical professional liability policy cover mold and microbial issues? Jeff Slivka takes a quick look.

Liability Insurance

The Duty To Defend—Groundless, False, or Fraudulent

2014-12-06 | Craig F Stanovich

This language was dropped from the 1986 and later editions of the CGL policy. Craig Stanovich looks at the effect.

Liability Insurance

The Montrose Endorsement—15 Years Later

2014-09-01 | Craig F Stanovich

The impact has not been as eventful as expected, per Craig Stanovich, with much of the litigation involving one insurer against another.

Construction Liability Insurance

Get a Knowledgeable Construction Broker

2014-09-01 | Mark Bell

Mark Bell explains some of the unique issues and considerations in construction insurance.

Liability Insurance

The "Your Work Exclusion"—A Curious View

2014-06-01 | Craig F Stanovich

Looking at a curious decision by the Alabama Supreme Court, Craig Stanovich points out the problems with its interpretation.

Construction Defect Coverage

Construction Defect and Occurrence: Still Crazy after All These Years

2014-06-01 | Patrick J Wielinski

Pat Wielinski reviews occurrence-based CGL opinions published during the past 18 months.

Design and Professional Liability

Contractors Professional Liability—A Market Update

2014-05-10 | Jeff Slivka

Jeff Slivka discusses changes in coverage, the insurers selling, and the contractors buying this coverage.

Liability Insurance

The CGL and the Professional Liability Exclusion

2014-04-01 | Craig F Stanovich

Craig Stanovich explains CG 22 79 and CG 22 80, and provides illustrations of their application.

Construction Defect Coverage

Ewing v. Amerisure

2014-01-01 | Patrick J Wielinski

Pat Wielinski discusses the recent Texas Supreme Court Ruling, Ewing Construction v. Amerisure, and its implications.

Liability Insurance

Subrogation and the CGL Policy

2013-12-01 | Craig F Stanovich

Effective risk transfer requires understanding subrogation, the anti-subrogation rule, and endorsement CG 24 04. Craig Stanovich explains.

Liability Insurance

Broad Form Property Damage—A Look Back

2013-09-01 | Craig F Stanovich

When policy interpretation questions arise, Craig Stanovich advises looking back at the drafters' explanations and illustrations.

Construction Liability Insurance

2013 ISO Additional Insured Endorsements: Putting the Changes into Context for the Construction Industry

2013-08-01 | Mark Bell

Mark Bell discusses the 2013 revisions, putting the changes into context for the construction industry.

Design and Professional Liability

Constructing Professional Liability Insurance Requirements for Design-Build Projects

2013-06-08 | Jeff Slivka

Jeff Slivka asks: what do you want to accomplish when requiring professional liability insurance for your design-build project?

Liability Insurance

Selling Your Premises—Does CGL Coverage Apply after the Sale?

2013-06-01 | Craig F Stanovich

Craig Stanovich takes a deeper look at the issue identified in the Risk Tip as to whether the CGL covers liability from property that has been sold.

Construction Liability Insurance

Indemnity and Additional Insured Requirements: Why Am I Demanding Them, Why Do Others Want Them, and What Does It All Mean?

2013-05-01 | Mark Bell

Insureds need to understand what relationship they are seeking and why to ensure they are adequately covered, per Mark M. Bell.

Liability Insurance

The 2013 Edition of the CGL Policy

2013-03-01 | Craig F Stanovich

Who will be most affected? Craig Stanovich says those selling liquor, BYO restaurants, and additional insureds.

Construction Liability Insurance

The Elusive "Pollution" Definition in the CGL Policy

2013-03-01 | Mark Bell

Owners, contractors, and subcontractors need to understand what their policies cover, advises Mark Bell.

Liability Insurance

The Claims-Made CGL Policy

2012-11-01 | Craig F Stanovich

The poor reputation of the claims-made CGL policy is often based on misinformation. Craig Stanovich provides his insight.

Design and Professional Liability

Contractor's Professional Liability and the CGL

2012-10-01 | Jeff Slivka

Jeff Slivka examines the CGL exclusion endorsements and discusses why contractors professional liability policies may provide a better solution.

Liability Insurance

Punitive Damages—Setting an Example

2012-06-01 | Craig F Stanovich

To say the CGL policy will never pay punitive damages is erroneous. Craig Stanovich explains.

Liability Insurance

Contractual Liability Exclusion—The Ball Is in Your Court

2012-06-01 | Craig F Stanovich

Fifth Circuit tosses the CGL policy's subcontractor's exception to the "your work" exclusion. Craig Stanovich relates the case.

Liability Insurance

Best Laid Plans: How the Definition of "Occurrence" in CGL Cases Continues To Change

2012-01-01 | R Steven Rawls

Faulty workmanship and the CGL policy—Steve Rawls relates recent litigation.

Liability Insurance

Is an Occurrence the Bodily Injury or Property Damage?

2011-12-01 | Craig F Stanovich

Does the cause or the effect determine the deductible? Learn these and other CGL and excess policy issues. (IRMI.com article)

Liability Insurance

Additional Insured Status—Automatic or Wet Blanket?

2011-10-01 | Craig F Stanovich

While additional insured endorsements serve a valuable purpose, Craig Stanovich warns the coverage provided cannot be assumed.

Design and Professional Liability

Mitigation of Damages Coverage Helps with Design Defects

2011-09-03 | Jeff Slivka

Provides insureds with first-party coverage for damages incurred from a design defect discovered during course of construction. (IRMI.com article)

Liability Insurance

Legal Separation—The Severability Test in the CGL

2011-06-01 | Craig F Stanovich

The implications of severability are often overlooked, misunderstood, or simply dismissed. Craig Stanovich explains.

Liability Insurance

Do CGL Policies Cover "Rip and Tear" Expenses?

2011-03-01 | R Steven Rawls

Whether or not CGL policies cover 'rip and tear' expenses varies among jurisdictions. Steve Rawls relates the caselaw.

Design and Professional Liability

Take Advantage of Project Excess Endorsements

2011-01-22 | Jeff Slivka

Jeff Slivka explains a cost-effective solution for handling requests for professional liability insurance.

Liability Insurance

The Increasingly Complex CGL Policy

2011-01-01 | Craig F Stanovich

Craig Stanovich examines rather obscure, yet important, coverage issues, such as the required degree of fortuity and the role of causation in coverage interpretation.

Design and Professional Liability

Failing To Define the Standard of Care

2011-01-01 | Kenneth A Slavens

Expert witnesses must render their opinions as design professionals render their services, per a case related by Ken Slavens.

Liability Insurance

Pay Me Back! Reimbursement of Defense Costs in the CGL

2010-10-01 | Craig F Stanovich

The caselaw on whether insurers can recoup defense costs for noncovered claims continues to evolve. Craig Stanovich examines the issues.

Construction Defect Coverage

Construction Defect Insurance Coverage Remains Difficult To Predict

2010-09-01 | Patrick J Wielinski

Texas does an about-face in Gilbert Tex. Constr., LP v. Underwriters at Lloyd's. Pat Wielinski reveals the dilemma.

Liability Insurance

"Arising Out of": How Strong Is the Connection?

2010-08-01 | R Steven Rawls

Courts are not consistent in their interpretation of the critical phrase "arising out of," as Steve Rawls illustrates.

Liability Insurance

The Recall Expense Exclusion—When Your Ship Does Not Come In

2010-07-01 | Craig F Stanovich

Craig Stanovich discusses the CGL sistership exclusion, its history and application.

Liability Insurance

Invisible Ink: The Duty To Defend When There Is No Duty To Defend

2010-05-01 | R Steven Rawls

Steven Rawls examines caselaw surrounding the duty to defend uncovered allegations.

Liability Insurance

The Impaired Property Exclusion

2010-04-01 | Craig F Stanovich

Exclusion m. of the CGL policy is routinely cited but often misunderstood. Craig Stanovich illustrates how it applies.

Liability Insurance

Lowered Expectation: How Courts Treat Expected Injury Exclusions

2010-02-01 | R Steven Rawls

Courts struggle to differentiate between expected and intended injury, per Steven Rawls.

Liability Insurance

A High-Level View of the CGL Policy

2010-01-01 | Craig F Stanovich

A plain, straightforward explanation of certain portions of the CGL policy provided by Craig Stanovich.

Design and Professional Liability

Project Professional Liability Insurance for Construction Firms

2009-11-14 | Jeff Slivka

Contractors are exposed to a variety of day-to-day professional risks, and Jeff Slivka describes products that are available to cover them.

Liability Insurance

The Duty to Defend: the Four(ish) Corners Rule

2009-11-01 | R Steven Rawls

The actual, not alleged, facts of a case play an important role in determining an insurer's defense obligation, per Steve Rawls.

Liability Insurance

OCP Liability versus Additional Insured Coverage

2009-10-01 | Craig F Stanovich

Whether OCP or additional insured coverage is preferable depends on many factors, per Craig Stanovich.

Construction Defect Coverage

CGL Exclusions May Impact Coverage for Occurrences Involving Defective Work

2009-10-01 | Patrick J Wielinski

Pat Wielinski relates a case finding no coverage for claims solely for economic loss due to faulty workmanship.

Liability Insurance

What Satisfies the Self-Insured Retention?

2009-08-01 | R Steven Rawls

CGL SIR endorsements are applied in a variety of ways, per Steve Rawls, depending on the jurisdiction.

Liability Insurance

Contractual Confusion—Assuming the Liability of Others

2009-07-01 | Craig F Stanovich

Craig Stanovich provides straightforward examples of the workings of contractual liability insurance.

Design and Professional Liability

Understanding Contractor's Protective Insurance

2009-06-01 | Jeff Slivka

Jeff Slivka explains why firms involved extensively in design/build efforts may need CPPI.

Design and Professional Liability

The 2007 AIA Document: Changes in Formal Dispute Resolution

2009-05-16 | Kenneth A Slavens

A new process allows the contracting parties to choose the dispute resolution method to be used. Ken Slavens explains.

Liability Insurance

Other Insurance and the CGL Policy

2009-04-01 | Craig F Stanovich

Craig Stanovich provides a basic understanding of the 'other insurance' clause of the commercial general liability policy.

Liability Insurance

CGL Insurance and the Question of Intent

2009-02-01 | R Steven Rawls

Steven Rawls examines court decisions on whether the CGL covers intentional acts by the insured where injuries or damages are substantially certain to occur.

Liability Insurance

Trigger Theories and the CGL

2008-12-01 | Craig F Stanovich

Craig Stanovich explains that trigger theories can only affect when the bodily injury or property damage is determined to have occurred.

Liability Insurance

Coverage Trigger: Getting It Right for the Right Reason

2008-10-01 | R Steven Rawls

Steve Rawls shows why an injury-in-fact or actual injury trigger is the only trigger theory he believes is supported by the CGL policy.

Liability Insurance

Care, Custody, or Control Exclusion in the CGL

2008-10-01 | Craig F Stanovich

Craig Stanovich describes how small changes in circumstances can result in totally different outcomes as to whether property is in the care, custody, or control of the insured.

Liability Insurance

The Future Is Now: When Eventual Indemnity Obligations become Present Defense Obligations

2008-08-01 | R Steven Rawls

Steve Rawls relates a case erasing the distinction between an insurer's duty to indemnify and its duty to defend.

Liability Insurance

CGL Insurance 2007 Edition—A Summary of Changes

2008-06-01 | Craig F Stanovich

While tempting, it's not wise to dismiss the December 2007 ISO changes. Craig Stanovich provides a synopsis.

Design and Professional Liability

Contractors Professional Liability Market Update

2008-06-01 | Jeff Slivka

Jeff Slivka expects to continue to see an expanded need for CPrL. Markets, requirements, rates, and trends are provided.

Liability Insurance

Variations on a Theme: When the Cause Theory Determines the Number of Occurrences

2008-05-01 | R Steven Rawls

Steve Rawls shows how similar facts may result in a different number of occurrences, despite courts' reliance on the cause theory.

Construction Defect Coverage

Defective Construction as an Occurrence: Witnessing the "Occurrence" Farewell Tour?

2008-04-01 | Patrick J Wielinski

Pat Wielinski reviews more litigation involving the CGL definitions of 'occurrence' and 'property damage.'

Liability Insurance

I Did Not Expect That! The CGL Exclusion for Expected or Intended Injury

2008-03-01 | Craig F Stanovich

Craig Stanovich highlights what is and what is not excluded by the commercial general liability (CGL) insurance policy's Exclusion a.

Design and Professional Liability

Owners Protective Professional Indemnity Insurance

2008-03-01 | Jeff Slivka

Jeff Slivka and Tony Polini discuss the OPPI policy as a more desirable option for owners than the alternatives currently available to them.

Liability Insurance

The Burden to Allocate: Mine, Yours, or Ours?

2008-02-01 | R Steven Rawls

Steve Rawls and Rebecca Appelbaum examine the caselaw surrounding the allocation issue.

Construction Defect Coverage

The Year of the Occurrence: 2007 Defective Construction Insurance Cases in Review

2008-02-01 | Patrick J Wielinski

Pat Wielinski reviews litigation involving the CGL definitions of 'occurrence' and 'property damage.'

Liability Insurance

Raising the Bar—The Liquor Liability Exclusion in the CGL

2008-01-01 | Craig F Stanovich

Craig Stanovich explains why assuming that liability insurance will respond to claims due to the serving or furnishing of alcohol is a mistake.

Liability Insurance

Insurance Law and Exclusion (m): It's Not Broken If You Can Fix It

2007-11-01 | R Steven Rawls

Insurance Law and Exclusion (m) Steve Rawls discusses cases addressing the impaired property exclusion in the commercial general liability insurance policy.

Liability Insurance

When Workers Aren't Employees

2007-09-01 | Craig F Stanovich

Is a leased worker considered a temporary worker? Craig Stanovich explains the difference and the insurance implications.

Construction Defect Coverage

Worth the Weight (in Gold): the Texas Supreme Court Weighs in on Defective Construction as Occurrence

2007-09-01 | Patrick J Wielinski

Pat Wielinski relates the recent Texas Supreme Court holding that unexpected/unintended property damage is an "occurrence" under the CGL.

Design and Professional Liability

Contractors Professional Liability Update

2007-08-01 | Jeff Slivka

Jeff Slivka examines the marketplace, the trends, and the various forms of coverage available this year.

Liability Insurance

More Allocation Theories: Exhaustion

2007-07-01 | R Steven Rawls

Steve Rawls and Rebecca Allpelbaum show how different courts apply allocation methods to determine indemnity obligations.

Liability Insurance

In Defense of Insured Contracts

2007-07-01 | Craig F Stanovich

Craig Stanovich explains the meaning of "insured contract" and how the term fits into the CGL policy.

Design and Professional Liability

Project Professional Liability: Professional Liability Insurance Alternatives for Construction Projects

2007-06-01 | Jeff Slivka

Jeff Slivka provides an overview of four alternatives for protecting a construction project from professional liability.

Liability Insurance

Cover Me: the Subcontractor Exception to the Your [Completed] Work Exclusion

2007-04-01 | R Steven Rawls

Steve Rawls explains why the issue of whether the general contractor's CGL policy covers faulty completed subcontractor work is far from settled.

Liability Insurance

The Scope of "Ongoing Operations" Additional Insured Endorsements: Broader Than Expected

2007-02-01 | R Steven Rawls

Steve Rawls and Rebecca Appelbaum examine cases where courts have construed that term to also include completed operations.

Liability Insurance

No Harm, No Coverage—Personal and Advertising Injury Liability Coverage in the CGL (Part 1)

2007-01-01 | Craig F Stanovich

Craig Stanovich examines Coverage B of the CGL. Part 2 will discuss applicable exclusions.

Liability Insurance

When Does Liability Coverage Exist for Mental Anguish without Bodily Injury?

2006-11-01 | R Steven Rawls

Steve Rawls explains why it is important to evaluate a claim for emotional distress damages from an excess policy perspective, taking jurisdiction into account.

Liability Insurance

Pre-Tender Defense Costs: Who Pays?

2006-07-01 | R Steven Rawls

Steve Rawls explains how assigning responsibility for pre-tender defense costs based on the notice provisions of the policy mixes apples with oranges.

Construction Defect Coverage

Complex Construction Defect Claims: Who Pays First?—Part 2

2006-07-01 | Patrick J Wielinski

Performance bond sureties may look to the contractor's CGL insurer to recoup losses. Pat Wielinski explains.

Construction Defect Coverage

Complex Construction Defect Claims Involving Performance Bonds and Insurance: Who Pays First?—Part 1

2006-06-01 | Patrick J Wielinski

In a two-part series, Pat Wielinski discusses a recent and major concern of the construction industry - the risk of nonperformance or default.

Liability Insurance

Additional Insured Endorsements—A Potential Minefield (Part 3)

2006-03-01 | Craig F Stanovich

In this final segment, Craig Stanovich explores possible pitfalls of additional insured endorsement exclusions, coverage restrictions, and conditions.

Liability Insurance

Additional Insured Endorsements—A Potential Minefield (Part 2)

2006-02-01 | Craig F Stanovich

Craig Stanovich looks at the comparative liability of the named insured and additional insured.

Liability Insurance

Allocation of Damages for Ongoing Losses over Multiple Policies: Who Pays and How Much?

2006-01-01 | R Steven Rawls

Looking at caselaw, Steve Rawls shows there is no uniform application of either trigger theories or allocation concepts.

Liability Insurance

Additional Insured Endorsements—A Potential Minefield (Part 1)

2006-01-01 | Craig F Stanovich

In this first of three articles, Craig Stanovich looks at the connection between the named insured and additional insured necessary for CGL coverage.

Design and Professional Liability

Are You Really Protected from Consequential Damages Exposure?

2005-11-01 | Michael C Loulakis

In discussing Action Ind. v. USF&G, Michael Loulakis points out the importance of a full waiver of consequential damages for anything arising out of or related to the design-build contract.

Design and Professional Liability

Higher Policy Limits for Specific Projects

2005-10-22 | David H Collings

David Collings explains that architects and engineers do not need to avoid projects that require higher insurance limits. Other options are available, such as adjusting professional liability limits.

Liability Insurance

Auto versus Mobile Equipment in the 2004 CGL—An Update

2005-10-01 | Craig F Stanovich

Insurance professionals must make determinations whether 'mobile equipment' is subject to motor vehicle registration and financial responsibility laws or compulsory insurance laws. Craig Stanovich provides advice.

Design and Professional Liability

The Exception Is Swallowing the Rule: Negligent Misrepresentation and the Economic Loss Doctrine

2005-07-01 | Kenneth A Slavens

Ken Slavens relates a recent Pennsylvania case allowing recovery where the defendant is in the business of supplying information for the guidance of others and makes a negligent misrepresentation.

Design and Professional Liability

The "Bargained-for" Result: Torts, Contracts, and Statutes of Limitation

2005-06-01 | Kenneth A Slavens

Limitations for contract and tort actions may differ. The applicable statute oflimitation is properly related to the remedy, rather than to the theoryof liability. Kenneth Slavens explains.

Liability Insurance

CGL—Fire Legal

2005-04-01 | Craig F Stanovich

Craig Stanovich explains that policyholders who rent space are presented with exposures that may not be properly handled by standard "fire legal" or "damage to premises rented to you" CGL coverage.

Design and Professional Liability

Dealing with Ambiguities in Design-Build Contracts

2005-01-15 | Michael C Loulakis

Mike Loulakis discusses recent case law supporting the view that an owner retains liability to the design-builder when it provides faulty or ambiguous information to bidders.

Liability Insurance

CGL—Covered Locations

2004-12-01 | Craig F Stanovich

The CGL policy is subject to its actual terms and conditions, including the policy territory. Craig Stanovich takes a look at the many facets of what constitutes "covered locations."

Liability Insurance

The New ISO Commercial General Liability Policy: A Summary of December 2004 Policy Changes

2004-10-01 | Craig F Stanovich

Craig Stanovich reviews the changes to the current October 2001 edition CGL policy and discusses two completely new ISO forms dealing with electronic data and product withdrawal.

Construction Defect Coverage

Recent Case Law Applying the Subcontractor Exception: Too Little Too Late?

2004-08-01 | Patrick J Wielinski

Pat Wielinski discusses two court rulings that could result in a catastrophic reduction in CGL coverage for many contractors, creating a coverage gap that will be extremely difficult to fill.

Design and Professional Liability

Making the Most of Standard Indemnity Clauses

2004-06-19 | Kenneth A Slavens

Kenneth Slavens relates the case of Nusbaum v. The City of Kansas City and the Missouri Supreme Court's application of indemnification clauses found in AIA documents.

Liability Insurance

Additional Insured Changes in the CGL

2004-05-01 | Craig F Stanovich

Craig Stanovich discusses the new changes to the additional insured endorsements and the introduction of a limitation to the definition of 'insured contract' characterized by ISO as coverage reductions.

Liability Insurance

The 2004 ISO CGL Policy

2004-04-01 | W Jeffrey Woodward

In March, Insurance Services Office, Inc. (ISO) began filing a revision of the standard commercial general liability (CGL) insurance coverage form, scheduled for implementation with policies written or effective on or after December 1, 2004. In this article, Jeff Woodward looks at the most significant revisions.

Design and Professional Liability

Standards Needed for Mold Exposure, Testing, and Remediation

2004-04-01 | Kent Holland

Richard Zarandona and Kent Holland discuss the mold litigation explosion, defective construction as the alleged cause of mold growth, the health effects, and the need for standards.

Construction Liability Insurance

Are All EIFS Contractors Created Equal?

2004-02-01 | Ann Hickman

There is an ongoing debate in the industry whether EIFS liability exposures can be underwritten or should simply be excluded. IRMI analyst Ann Hickman provides some insights into how an underwriter might evaluate the risks faced by a contractor from exterior insulation and finish systems.

Liability Insurance

Known Injury or Damage

2003-10-01 | Craig F Stanovich

Craig Stanovich looks at the history behind the provision that coverage ceases for all subsequent CGL policies once certain insureds learn of any continuing injury or damage.

Construction Liability Insurance

Construction Defect Crisis Produces Coverage-Restricting Endorsements

2003-08-01 | Ann Hickman

Insurers are making significant changes to their policies in response to rising construction defect claims. Ann Rudd Hickman takes a look at these changes, including those affecting known loss, EIFS, mold, earth movement, residential construction, additional insureds, and others.

Design and Professional Liability

Insurer Uses Contractual Liability Exclusion to Deny Coverage

2003-06-28 | Kent Holland

In American Family Mutual Insurance v Pleasant Company, the court's reasoning completely misconstrues the purpose of the contractual liability exclusion, Kent Holland explains.

Liability Insurance

When Is an Insured Not an Insured?

2003-06-01 | Craig F Stanovich

In this CGL Insurance column, Craig Stanovich looks at the first step in accurate coverage interpretation: identifying who is an insured and when protection applies.

Construction Defect Coverage

The Myth of "Third-Party" Property Damage

2003-05-01 | Patrick J Wielinski

Pat Wielinski discusses the varying judicial application of standardized CGL definitions to claims involving defective work, and the coverage myths that have arisen as a result.

Design and Professional Liability

The Ability To Disclaim Liability Resulting from Inspection Duties

2003-05-01 | Kenneth A Slavens

Through the examination of case law, Kenneth Slavens reveals judicial support for the argument that the risk the design professional assumes by inspection or observation can be limited by contract.

Liability Insurance

The CGL Pollution Exclusion

2003-03-01 | Craig F Stanovich

The CGL Pollution Exclusion—The current ISO CGL policy provides littlepollution coverage. Craig Stanovich discusses the history and intricacies ofthe coverage.

Design and Professional Liability

Liquidated Damages Clause and Waiver of Consequential Damages Clause Effectively Cap Damages Available Against Design-Builder

2003-03-01 | Kent Holland

Here, Kent Holland examines a case that provides insight into the judicial interpretation of contract clauses that purport to limit liability of engineers/contractors.

Design and Professional Liability

Copyright Infringement of Design Documents

2002-11-16 | Kent Holland

Using a recent case as an example, Kent Holland discusses the importance of preserving the copyright interest of the architect's design documents.

Design and Professional Liability

Design Disclaimers and Implied Warranties

2002-11-01 | Kenneth A Slavens

Citing a recent case, Kenneth Slavens discusses the importance of precise language used in disclaimers that are part of design packages.

Construction Defect Coverage

Even More on Defective Work as an "Occurrence"

2002-10-01 | Patrick J Wielinski

Wielinski explains how a recent Texas Supreme Court case may finally put to rest the question of whether the CGL policy provides coverage for the defective work of others despite the definition of occurrence.

Liability Insurance

Duty To Defend in the CGL Policy

2002-08-01 | Craig F Stanovich

This article by Craig Stanovich explains in a clear, concise, and understandable way how the duty to defend provision works in the CGL policy.

Construction Liability Insurance

Insuring Design-Build Risks

2002-08-01 | Ann Hickman

Taking on responsibility for design in addition to construction entails many new risks. This article examines the potential liabilities facing design-builders and how they can be handled. Also see IRMI's new book by the most knowledgeable practitioners in the industry, Design-Build Risk and Insurance, which offers you their insight in one handy, well-organized guide.

Design and Professional Liability

Insurance Coverage—Waivers of Subrogation

2002-08-01 | Kent Holland

In this article, Kent Holland discusses a Fourth Circuit case that demonstrates the importance of waivers of subrogation as part of the risk allocation strategy.

Design and Professional Liability

The Design Professional's Statute of Repose: Stumbling Blocks to the Defense of Torts and Contractual Indemnity Claims

2002-07-01 | Kenneth A Slavens

Kenneth Slavens examines the case of Jordan v. Sandwell, Inc., highlighting the problems that design professionals may encounter when the statute of repose is raised as a defense.

Construction Defect Coverage

Potomoc Insurance v Huang

2002-06-01 | Patrick J Wielinski

In this article, Pat Wielinski examines a recent Kansas case recognizing the validity of the insurability of a contractor's work to repair property damage before suit is brought.

Design and Professional Liability

Contract Documents of the Design-Build Institute of America

2002-05-01 | Kent Holland

Kent Holland examines a few of the more significant clauses of the DBIA standard forms affecting risk allocation and potential insurance coverage.

Construction Defect Coverage

Policy Modifications and Endorsements Relating to Liability Insurance Coverage for Mold

2002-03-01 | Patrick J Wielinski

This is an article on policy modifications and endorsements relating to liability insurance coverage for mold.

Liability Insurance

The 2001 ISO CGL Revision

2002-01-01 | W Jeffrey Woodward

A new edition of the Insurance Services Office, Inc. (ISO), commercial general liability (CGL) policy was implemented in December. This article summarizes the significant changes in coverage, particularly as respects coverage for Internet exposures.

Construction Defect Coverage

Full Circle Regression: the New ISO "Your Work" Endorsements

2002-01-01 | Patrick J Wielinski

In December, ISO issued two new endorsements for contractors' CGL policies eliminating coverage for property damage arising out of their subcontractors' defective work. Pat Wielinski examines the history and explains the problem.

Design and Professional Liability

Architects and "Design and Construct" Liability under the Americans with Disabilities Act

2001-12-08 | Kenneth A Slavens

Another federal court of appeals has weighed in on the applicability of the ADA to design professions. Kenneth Slavens explains how the ADA liability exposure of a building designer depends on where the project is located, until a higher court rules on the issue.

Design and Professional Liability

Problems with Arbitration in Design-Build

2001-11-17 | Kent Holland

In this article, Kent Holland explains that when arbitration is the main means of dispute resolution under a design-build contract, why it is so important for all parties to a design be subject to a single arbitration action.

Design and Professional Liability

You Just Stood There? The Design Professional's Responsibility for Job Site Injuries

2001-09-22 | Kenneth A Slavens

What should the design professional do after witnessing unsafe job site practices by the contractor? Ken Slavens explains how different jurisdictions answer that question and what can be done to both prevent injury and protect liability.

Construction Defect Coverage

Glorifying Form over Substance: "Legally Obligated" in the CGL Insuring Agreement

2001-08-01 | Patrick J Wielinski

Insurers may deny claims where a contractor, absent the filing of a lawsuit, repairs property damage caused by an obvious accident. Pat Wielinski discusses the scenarios, issues, case law, and provides practical pointers for avoiding this situation.

Design and Professional Liability

Design-Build Engineer Held Liable for Negligence

2001-07-21 | Kent Holland

A complex court decision holds that a developer is entitled to recover its losses from the design-builder who employed the engineer and constructed the failed projects. J. Kent Holland Jr. explains its significance.

Liability Insurance

Insurance Coverage Disputes and Society's Problems

2001-05-01 | Jill B Berkeley

Unfortunately, insurance coverage disputes mirror casualty and liability losses throughout the world. This article examines recent litigation involving insurance coverage disputes and violent crimes and sexual assaults.

Construction Defect Coverage

Back to the Exclusions—The "Subcontractor" Exception

2001-05-01 | Patrick J Wielinski

The "your work" exclusion of the CGL policy, together with its "subcontractor" exception, are the source of great contention in construction defect cases. This article looks at the question of whether coverage exists for property damage arising out of work or materials supplied by other than a traditional subcontractor.

Design and Professional Liability

Negligent Misrepresentation: Chipping Away at the Design Professional's Protection under the Economic Loss Doctrine

2001-03-01 | Kenneth A Slavens

The merits and failings of the economic loss doctrine as applied to the design professions have been continually debated. Learn how relatively recent court opinions have signaled further erosion of the protection that the doctrine provides.

Liability Insurance

Coordinating Persons Insured in Primary and Excess Liability Policies

2001-02-01 | Richard Rudolph

Too often little attention is paid to exactly how coverage follows the various insureds from underlying policies into umbrella/excess layers. Learn three important points to review when coordinating coverage: the named insureds; the additional insureds; and insured-versus-insured provisions.

Liability Insurance

Gun Violence and the CGL Policy

2001-02-01 | W Jeffrey Woodward

The gun violence public policy debate has moved into the courts where individual, class-action, and governmental plaintiffs are all seeking to hold firearms manufacturers and distributors legally liable for injuries caused by guns. Learn how the First Circuit court's unwillingness to view such claims as anything other than 'bodily injury arising out of your product' suggests that CGL coverage in such litigation will be hard to establish.

Construction Defect Coverage

Insurance Coverage for Mold Arising Out of Defective Workmanship

2001-02-01 | Patrick J Wielinski

The proliferation of indoor mold and mildew problems—and resulting lawsuits—have sent many contractors scrambling for coverage under their insurance policies. This article discusses case law surrounding the issue, including whether mold is considered a "pollutant" and whether cleanup is covered under the CGL policy.

Construction Liability Insurance

How Well Does That Blanket Cover You?

2001-02-01 | Ann Hickman

Blanket additional insured endorsements are useful tools for preventing administrative oversights and reducing paperwork, but they also carry risks for both the named and additional insureds. Discover methods contractors and subcontractors can use to minimize the risks of breaching their contracts when using blanket AI endorsements.

Liability Insurance

Spoliation of Evidence: The Next Frontier for Insurance Coverage Battles

2001-01-01 | Jill B Berkeley

Over the past several years, courts have fashioned a new cause of action deriving from products liability cases when evidence is destroyed, lost, or altered: spoliation of evidence. Does the post-1986 ISO, CGL policy cover this loss? See why this author thinks so.

Liability Insurance

Who Wants to Be an Insured?

2000-12-01 | Richard Rudolph

It is common for businesses to involve multiple corporate, partnership, and joint venture entities, and there are a number of subtle nuances that can effect how insurance coverage applies to these entities. Care must be taken to identify them and assure that insured status is properly provided under CGL policies. Learn how in this insightful article.

Design and Professional Liability

Professional Liability: Are Contractors Adequately Protected?

2000-12-01 | Fred Muse

Fred Muse discusses as the lines of responsibility between design firms and contractors merge and contractors are assuming nontraditional risk whether their core insurance coverages are being addressed.

Construction Defect Coverage

More on Defective Work as an Occurrence

2000-11-01 | Patrick J Wielinski

By their nature, defective work claims are often hotly contested. Even relatively simple claims cause confusion, resulting in inconsistent court opinions. This article examines the problem and suggests a comprehensive approach to determining the applicability of coverage to these claims.

Design and Professional Liability

AIA Standard Form Is an Acceptable "Allocation of Risk" between "Sophisticated Business Actors"

2000-09-01 | Kenneth A Slavens

The Fourth Circuit court has ruled the accrual provision in AIA 11.3 to be enforceable. The court held that the clause, which determines when the statute of limitations begins to run, is not against public policy.

Design and Professional Liability

Insurance for Architect- and Engineer-Led Design-Build Projects

2000-08-01 | David H Collings

This article reviews the liability insurance typically purchased by architects and engineers, and examines how well it works in design-build settings.

Liability Insurance

When a Breach of Contract Constitutes an Accident

2000-07-01 | Jill B Berkeley

Courts that confuse damages arising in "tort" with damages arising in "contract" overlook an important legal principle, as well as misuse the concept of "negligence" in the insurance context. The argument that concludes no coverage exists for breach of contract actions puts the cart before the horse. Jill Berkeley explains.

Construction Defect Coverage

Defective Work as an Occurrence

2000-07-01 | Patrick J Wielinski

Despite standardized CGL policy language, courts around the United States have, at best, produced a mixed bag of results in applying the definition of 'occurrence' to faulty workmanship. This article reviews the two most prevalent types of analysis used by the courts, and why they lead to very different coverage interpretations.

Design and Professional Liability

Project-Specific Professional Liability: Who Really Pays for Design Errors?

2000-05-01 | David H Collings

David Collings looks at professional liability arising out of project design and construction management services.

Liability Insurance

When Negligent Conduct Does Not Constitute an Accident

2000-03-01 | Jill B Berkeley

Jill Berkeley looks at how courts have answered the question of when does negligent conduct constitute an accident, and when does it not.

Liability Insurance

Additionally Insured or Held Harmful?

2000-03-01 | Richard Rudolph

Use of the additional insured and the hold harmless clause approach without some other modifications to the CGL policy can result in a risk being ineffectively transferred or not transferred at all, contrary to the expectations of the parties. Richard Rudolph explains.

Liability Insurance

The 1999 CGL Insuring Agreement: ISO's "Montrose Endorsement"

2000-03-01 | W Jeffrey Woodward

ISO has revised the CGL insuring agreement to address "known loss" issues raised by the California Supreme Court in Montrose Chemical v Admiral. Find out how significant the new restrictions on coverage are.

Construction Defect Coverage

The Changing Landscape of Coverage Disputes over Defective Work Claims

2000-03-01 | Patrick J Wielinski

Patrick Wielinski reviews the move away from using the traditional property damage exclusions as a basis to deny coverage for defective work claims to using the definitions of "occurrence" and "property damage," together with the insuring agreement.

Construction Liability Insurance

PMPL Policy Remains a Mystery for Many Contractors

2000-03-01 | Ann Hickman

Learn about the scope of coverage under the project management protective liability (PMPL) policy and how it compares with the more traditional methods of insuring against liability arising out of construction projects.

Commercial Liability Articles

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