Occurrences in Construction Defects Claims: Triggering Coverage and Interpreting Exclusions Under CGL Policies

Whether construction defects constitute occurrences under CGL policies is a hotly contested issue with varying viewpoints among state courts. Some courts tend to look at the policy exclusions to determine if construction defects are specifically excluded (usually favorable to policyholders).

Other courts hold that construction defects are not occurrences because they are not accidents (usually favorable to insurers). In response to such rulings, several states have recently passed legislation to protect coverage under CGL policies for construction defects.

Listen as our authoritative panel of insurance practitioners discusses the issue of occurrences in the realm of construction defects claims and best practices for evaluating and arguing coverage under CGL policies.

1. Relevant policy language and policy interpretation principles
2. Courts and theories supporting construction defects as occurrences
3. Courts and theories supporting construction defects are not occurrences

The panel will review these and other key issues:

• What theories and policy interpretations are advanced by courts that find construction defects covered under CGL policies?
• What theories and policy interpretations are advanced by courts that reject coverage for construction defects under CGL policies?
• What approaches have state legislatures taken to address the issue of construction defect coverage under CGL policies?