Faulty Workmanship as an Occurrence State Law Survey

Summary

This survey reviews state law on the issue of faulty workmanship as an occurrence for purposes of coverage determination under a commercial general liability (CGL) policy. As a general rule, courts have concluded that defects in the insured's work product are not covered unless a certain exception applies. As another general rule, with a few exceptions, defective workmanship that causes property damage to something other than the insured's work product is covered. Courts vary on the rationale applied to construction defect claims, resulting in wide disparity around the country over the treatment of such claims, especially those involving relatively similar facts and oftentimes identical policy language. The survey covers all 50 U.S. states and the District of Columbia.