In Dostart v. Columbia Insurance Group, the Iowa Supreme Court reaffirmed the rule — in Iowa, and many other jurisdictions — that faulty workmanship by a contractor does not constitute an “occurrence” as defined in a standard commercial general liability (CGL) policy. And the court extended this rule to damages caused by delay, holding that failure to deliver a construction project on time — like failure to build the project in a workmanlike manner — does not constitute ... Keep Reading »
New York Federal Court Enforces Exclusion Barring Coverage for Claims Based on Any Misrepresentation, Regardless of Perceived Materiality
When state law provides that an insurance contract can be rescinded for misrepresentations only if they are “material,” can an insurer contract around that rule by adding an exclusion for all claims based on any misrepresentation, regardless of materiality? The Southern District of New York says “yes” in Mt. Hawley Insurance Co. v. Beach Cruiser LLC. The insureds were the owner and property manager of various rental properties, including a house in downtown ... Keep Reading »