Builder's Risk Coverage for Construction Defects and Accidents Caused by Defective Workmanship

Strafford Publications, Inc.

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DATE: Thursday, January 26, 2017

TIME: 1:00 PM - 2:30 PM

Construction project accidents and defects are costly and complex and often result in hotly contested and extended battles over builder's risk insurance (BRI) coverage.  One of the more common coverage battles is whether there is builder's risk coverage for defective workmanship.

There are many legal issues that impact recovery for construction accidents or defects caused by defective workmanship.  As there is not a standard form BRI policy, coverage depends on subtle distinctions in policy terms and language.

Counsel representing both construction owners and insurance companies must understand key issues such as mere defective workmanship, accidents and external causes, express exclusions for defective workmanship, and the inherent vice and latent defect exclusion.

Some of the issues to be discussed are:

  • What factors do courts look at in determining whether a construction defect has caused physical damage or loss as opposed to mere defective workmanship?
  • How have courts interpreted express policy exclusions for defective workmanship?
  • How have courts interpreted express policy exclusions for inherent vice and latent defects?

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