Contractor’s Toolbox – Your insurer may not cover construction defect claims

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Abstract: Contractors often assume that their commercial general liability insurance policies will cover them in the event of a construction defect claim. But that’s not necessarily the case. As this article explains, coverage may be denied if construction defects either: 1) aren’t considered accidental “occurrences” under applicable state law, or 2) fall within one or more policy exclusions. If a construction company finds that there are gaps in its insurance protection, it might find it wise to purchase supplemental coverage — such as builder’s risk or professional liability coverage.