INSURANCE COVERAGE FOR CONSTRUCTION LIABILITIES

1. SCOPE OF ARTICLE 1
2. INRODUCTION 1
3. COMPREHENSIVE GENERAL LIABILITY POLICIES 2
   1. "Occurrence" Requirement 2
   2. Trigger of Coverage 5
   3. Duty to Defend 7
   4. Duty to Pay 9
   5. Allocation of Risks 9
   6. Coverage for Environmental Liabilities 11
      1. "Occurrence" Requirement 12
      2. Cleanup costs "As Damages" 14
      3. Owned-or-Leased-Property Exclusion 16
      4. "Sudden and Accidental" Pollution Exclusion 18
      5. So-Called "Absolute" Pollution Exclusion 26
      6. "Personal Injury" Coverage 33
   7. Coverage for "Additional Insureds" 36
4. BUILDERS RISK INSURANCE 38

Abstract

This article examines some of the "hot" insurance coverage issues facing the construction industry, such as coverage for environmental and other long-tail claims.1 It also addresses some old but important issues, such as coverage for "additional insureds." Part II provides introductory comments. Part III examines the comprehensive or commercial general liability (CGL) policy, the most common source of coverage for third-party construction liabilities. Part IV provides an overview of first-party Builders Risk insurance used to protect both the owner and contractor against loss or damage to work.

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