Does 'Property Damage' Insurance in Contractor's Policy Cover Liability to Property Owner for Defective Workmanship?
Westfield Insurance Co. v. Custom Agri Systems, Inc., Case no. 2011-1486
U.S. Sixth Circuit Court of Appeals
Are claims for alleged defective construction/workmanship brought against a contractor by a property owner covered under the provision in the contractor’s commercial general liability policy for “property damage” caused by an “occurrence”?
If such claims do qualify as “property damage” caused by an “occurrence,” does an exclusion in a commercial general liability policy for damages based on breach of a contractual duty preclude coverage for claims based on alleged defective construction/ workmanship?