Courts Chip Away at Significant Construction Industry Coverage

FC&S Legal

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PUBLISHED ON: January 18, 2017

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Over the last decade and a half, construction industry policyholders have had to contend with the insurance industry’s multiple attempts to narrow access to additional insured coverage in standard form commercial general liability (“CGL”) policies. At the same time, a number of court decisions have taken a narrow and seemingly unsupported view of the scope of “insured contract” coverage available to such policyholders. These two developments are alarming for the construction industry, which depends on additional insured status and the ability to access insurance coverage for contractually assumed tort liabilities as standard risk management practices.