Annual Meetings-Session III: Faulty Workmanship and Ensuing Losses: Faulty Design and Workmanship and Ensuing Losses

Session III: Faulty Workmanship and Ensuing Losses: Faulty Design and Workmanship and Ensuing Losses

Pdf Summary

The document discusses various insurance policy exclusions related to faulty design, workmanship, and ensuing losses. It explains that insurance policies do not cover losses caused by inherent vice, wear and tear, and other specified exclusions unless a separate covered peril results in ensuing damage. The text highlights that while direct harm from faulty design or construction is typically excluded, resulting damage of a different kind may be covered. Different clauses and exceptions in insurance policies from various locations like California, New Orleans, Florida, Kentucky, Detroit, and Seattle are analyzed. The document provides insights into legal interpretations of policy language and emphasizes the importance of investigating causes of loss, identifying damage categories, studying policy language, and conducting legal research in the relevant jurisdiction. It explains that coverage for resulting losses is provided if the damage is caused by a covered peril, but exclusions apply if the damage is solely due to faulty workmanship without the involvement of an independent covered peril.

Asset Caption

Presented by:
James Hoey, Partner, Clausen Miller, PC

Keywords

insurance policy exclusions

faulty design

workmanship

ensuing losses

inherent vice

wear and tear

covered peril

policy language

legal interpretations

resulting damage