The Insurance Coverage Team handles construction defect, including mold-related coverage disputes arising from both allegedly faulty workmanship and allegedly defective products. The firm represents companies engaged in every phase and aspect of the construction process: architects, developers, general contractors and subcontractors. These disputes typically require resolution of complex coverage issues including, but certainly not limited to, the potential application of policy exclusions which purportedly limit coverage for damage to the policyholder’s “own work” and “own product.” Securing insurance coverage, in the face of these exclusions, requires an application of insurance coverage principles as well as knowledge of and experience with underlying construction defect litigation.
The Insurance Coverage Team successfully concluded coverage litigation on behalf of a national manufacturer of allegedly defective roof sheathing for multi-family residences. The Team convinced the trial court to adopt and apply an innovative legal theory which relieves the policyholder of proving actual damage to third party property if the policyholder’s product inevitably will fail and cause damage to third party property in a sufficiently high number of the units containing the product. After picking a jury, the remaining defendant insurer settled with the policyholder who recovered nearly $100 million in defense and indemnity coverage for underlying claims filed around the country.
We also advise on the procurement of insurance for owners, developers, architects and engineers, contractors, vendors and end-users on major project sites including in the area of OCIPs and CCIPs for both private and public facilities, including tall buildings, stadia and tenant fit-out. Team members recently assisted a major professional sports franchise analyze a contractor-provided insurance program and re-negotiate coverage terms with the contractor’s insurer.