Construction Property Damage Claims: CGL Exclusions K, L, and M, Products-Completed Operations Coverage

Property damage claims arising in construction cases present complex coverage issues. Courts are routinely called upon to decide whether claims arising from faulty construction and workmanship are covered or excluded from coverage by the CGL policy. Some states have held that such claims do not constitute an occurrence.

Court and state approaches vary. Some rely on exclusions in a CGL policy, primarily exclusion K, damage to the insured's product; others on exclusion L, damage to the insured's work; and others on exclusion M, damage to impaired property or property not physically injured.

Also often at issue is whether products-completed operations coverage includes bodily injury and property damage arising from the insured's products and work. Whether the work was done by the insured or a subcontractor is a factor in determining whether property damage is covered or excluded.

Listen as our authoritative panel of construction practitioners analyzes the CGL exclusions for property damage in construction cases, the applicability of products-completed operations hazard coverage, factors courts consider in determining whether property damage is covered, and formulating arguments for or against coverage for these claims.