b'Questions?Use the MRCA Legal Services Plan! See Page 9 for Detailsaccident, and not an occurrence, and therefore notstated that CGL policies cover unexpected damages covered. (i.e. accidental damages) caused by the insureds Would this be Covered in Your State? subcontractor.The Ohio Supreme Courts decision in that case isFor example, the Wisconsin Supreme Court held different than many other states.We acknowledgejust that in American Family Mutual Insurance Co. v. that our reasoning in this case contrasts with recentAmerican Girl, Inc.In that case, a new warehouse had decision of other courts, the court conceded.Butto be razed after the soil underneath it had settled, regardless of any trend in the law, we must look to thecausing irreparable damage to the warehouse.The plain and ordinary meaning of the language used in thewarehouse owner sued the general contractor that [Charles Construction] CGL policy before us.built the warehouse, and the contractor filed a claim with its insurer under the CGL policy.The insurance Other states find that faulty workmanship is ancompany refused to pay the claim, in part arguing that occurrence because it is not intended.The majority ofthe defective workmanship was not accidental, and state Supreme Courts hold that unless there is prooftherefore, not an occurrence.But the court disagreed that the contractors work was intentionally faulty, it isbecause faulty work typically occurs accidentally.accidental, and therefore an occurrence, and therefore,Insurance is meant to cover accidents, the court held.covered under CGL claims. Even state legislatures have weighed in.Some states, This has been the trend in the insurance industry overlike Colorado and Arkansas, have passed statutes the last several years, if not decades.The standardstating that construction defects are occurrences.CGL policy traditionally did not cover damages toTopeka, the Waterlogged T-Rexthe insureds own work, even if that was caused by a subcontractor.But that started to change in theWhat about Topeka, the waterlogged T-Rex?Will 1970s.Gradually, the standard CGL policy expandedthe damaged museum be covered under the general to cover damages caused by a subcontractors faultycontractors CGL policy?Unless the project occurred workmanship, provided of course that the insuredin one of the few states that have refused to follow paid the premium.And so, by the late-1980s, CGLthe trendsuch as Ohio, Arkansas, Kentucky, and policies were covering damage to the project thatPennsylvaniathe damage would likely be covered.were caused by the subcontractors inadvertant faultyBut only if the damage was accidental and unexpected.workmanship. Subcontractors beware.While dinosaurs can no longer As noted, State Supreme Courts, with just a fewbite, the insurance industry can.Be sure to check with exceptions, have recognized and affirmed the legalityyour insurer and perhaps the general contractor to of this insurance-industry trend.Over the lastdetermine if your alleged faulty work would be insured. few years, state Supreme Courts have repeatedly www.mrca.orgMidwest Roofer 13'