In a recent post, we discussed the impact of Kvaerner Metals v. Commercial Union Ins. Co., 908 A.2d 888 (Pa. 2006), upon general contractors and others vis-à-vis the coverage afforded by commercial general liability policies for claims involving damage caused by faulty workmanship. In light of that decision, insurance coverage for such claims no longer exists. However, in response to the obvious gap in coverage that presently exists under standard CGL policies, insurers are beginning to offer endorsements that may bridge that gap and restore the protection that previously existed before Kvaerner and its progeny. Caution should be exercised, however, when evaluating whether or not to purchase an endorsement as certain endorsements may only offer limited protection and may be very costly. For more information on this topic, please contact our office.
Will Insurers Bridge the Gap in Coverage for General Contractors under CGL Policies?
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