Michael McNamara and Lexie Pereira | American Bar Association Subcontractor Default Insurance (“SDI”) is marketed as a substitute for a subcontractor performance bond as SDI provides coverage for a prime contractor’s losses due to a subcontractor’s failure to perform on a project. Based on the purpose of SDI and with “Default” in its full name,… Continue reading The Silent ‘D’ in SDI: Subcontractors May Not Need to be Notified of Default for Prime Contractors to Receive Subcontractor Default Insurance Coverage
Category: Insurance
The First Circuit Court of Appeals Weighs in on CGL Coverage for Allegedly Defective Subcontractor Work (Or Does It?)
Eric Eisenberg, Robert Ferguson Jr. and Alexandra Gordon Briggs | Hinckley Allen You, a general contractor, receive a notice of claim on a building you finished years ago. The Owners allege: (1) damage to the underground pipes due to the settlement of the foundation/backfill; and (2) water damage to interior spaces due to defects in… Continue reading The First Circuit Court of Appeals Weighs in on CGL Coverage for Allegedly Defective Subcontractor Work (Or Does It?)
Caution: Penal Sum of Bond May Not Be the Limit
Michael Baker | Snell & Wilmer A couple of years ago, a California court rendered an opinion that a surety is liable for attorney’s fees and costs even if the amount exceeds the penal sum of the bond. (Karton v. Ari Design & Constr., Inc.). This was further confirmed in another opinion last year (Chavez Gen Constr,… Continue reading Caution: Penal Sum of Bond May Not Be the Limit
Understanding a Reservation of Rights Letter
Alexis Theriault | Conn Kavanaugh You have purchased a liability insurance policy and believe that your insurance coverage will protect you from any claims that may be made against you. You receive a claim letter or are served with a legal document that says “complaint” and initiates a lawsuit against you. You send it to… Continue reading Understanding a Reservation of Rights Letter
Federal Court Properly Applies Concurrent Causation and Rejects an “Expert” Opinion –Thompson v. State Farm Lloyds
Lindsey Bruning | Zelle U.S. Magistrate Judge Andrew Edison of the United States District Court for the Southern District of Texas recently issued a decision granting summary judgment for an insurance carrier in a first-party case involving alleged hail damage to a residential property. In granting summary judgment, the Court rejected an improper disclosure of… Continue reading Federal Court Properly Applies Concurrent Causation and Rejects an “Expert” Opinion –Thompson v. State Farm Lloyds