Originally published by Matthew DeVries on Best Practices Construction Law blog.
There are multiple types of insurance coverage for the various risks on a construction project. However, when there are multiple insurance carriers covering the same risk (i.e., general liability, builder’s risk, workers’ compensation, professional liability) over different periods of time, there may be a dispute as to which carrier covers the loss.
The court case of the Cincinnati Insurance Co. v. Motorists Mutual Insurance Co. addressed this very issue. There are a few take-aways from the decision as to which insurance carrier may be responsible for damages:
- A CGL policy generally provides for coverage during the policy period.
- There are different conclusions as to whether claims for defective work are covered, but most states say “no”.
- The duty to defend is definitely broader than the duty to indemnify.