SDV Insights

From structural collapses to fires, the construction industry has experienced a number of high-profile catastrophes over the past decade. These disasters test the mettle of even the most experienced risk professionals and the strongest insurance programs. Issues can arise in all facets of the company's contracts and insurance policies, and dealing with the aftermath is an extensive and demanding process that can involve many players.

Contradicting the Missouri Supreme Court and the majority of courts nationally, the 8th Circuit, applying Missouri law, recently ruled, in American Family Mutual Ins. Co. v. Mid-American Grain Distributors LLC, that defective or faulty workmanship is not an "occurrence" within the meaning of a Commercial General Liability ("CGL") policy.

Construction projects are susceptible to injuries and property damage - which is why the stakeholders involved rely heavily on commercial general liability ("CGL") insurance policies when such losses occur.

COVID-19 Business Interruption Challenges

Boston's recent decision to temporarily shut down city construction projects has many in the industry asking what impact, if any, a COVID-19 related shutdown would have on project insurance.

In the 2019 edition of SDV's Top Ten Insurance Cases, we probe wiretapping claims under an armed security services policy, delicately sniff out E&O coverage for a company using cow manure to create electricity, scour the earth for coverage for crumbling foundation claims, and inspect D&O policies for government investigation coverage. In addition, we preview some important and exciting decisions due in 2020.

A recent Illinois Appellate Court’s decision in, Acuity Ins. Co. v. 950 West Huron Condominium Owners Association, 2019 IL App (1st) 180743 (2019), strengthens Illinois’ pre ...

In recent years, the foundations of approximately 35,000 homes in northeastern Connecticut have begun to deteriorate as a result of faulty concrete used to build homes during the 1980s and 1990s. Dozens of homeowners have been suing their insurers for denying coverage for claims based on the deteriorating foundations. Of those cases, three related lawsuits against Allstate Insurance Company were the first to make it to the federal appellate level.

The recent white paper on Repair Work Endorsements by Jeremiah Welch, drew a storm of responses. Most were appreciative and included follow up questions, but there were those that lamented along the lines of: "How can that be? We've been doing it this way for years...".

Many markets which provide insurance for construction projects include an endorsement providing coverage for "repair work" as part of their standard policy. "Repair work" endorsements are largely misunderstood by policyholders and the insurance broker community.