In finding for the insured, Washington Energy, the court declared each business risk exclusion
to be vague.
This interpretation of the subcontractor exception to the business risk exclusion
does not "create coverage" where none existed before, as American Family contends.
July 11, 1991), the court held that the business risk exclusion
did not apply to injury caused by lead pigment in paint because the product, while inherently dangerous, was not defective.
The effect of the business risk exclusion
is to make the contractor stand its own replacement and repair losses, while the insurer assumes the risk of injury to the property of others.
The so-called impaired property exclusion is another business risk exclusion
in the standard ISO CGL form that could be applicable to a contaminated foods claim.
He has experience with a variety of coverages including general liability, professional liability, commerical auto, property, businessowner's and homeowner's policies, and has successfully prevailed in Illinois cases of first impression applying the business risk exclusions
and the false pretense exclusion.
A state-by-state review of the decisions on this subject reveals a broad spectrum of interpretations spanning the gap from those which find that defective construction is never an "occurrence" (therefore, regardless of the extent of damage beyond the insured's own work product, the claim is not covered), to those which find not only that defective construction is an "occurrence" but that the business risk exclusions
are ambiguous and do not bar coverage for repair and replacement of the insured's own work product.
For example, when a third party files a liability claim for damage or injury involving an insured's product or work, adjusters sometimes see the words "product" or "project" and turn to a boilerplate litany of the business risk exclusions
Collectively referred to as the business risk exclusions
, they provide a road map of the difference between the uninsurable cost of doing business and insurable business liabilities.
The third edition contains updated coverage of various issues related to commercial general liability policy, including pollution-related coverage, government-imposed cleanup, trigger of coverage, and business risk exclusions
The court then circumnavigated existing case law which had recognized that mere delivery of a defective product doesn't constitute an occurrence, by stating: "CGL policies generally do not cover contract claims arising out of the insured's defective work or product, but this is by operation of the CGL business risk exclusions
, not because a loss actionable only in contract can never be the result of an 'occurrence.
It will also feature news on property damage interpretations, mold, occurrence, business risk exclusions
, additional insureds, bad faith, obligations to pay, and allocation, as well as full-text court documents and expert commentary.