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INSURANCE COVERAGE FOR CONSTRUCTION LIABILITIES

10th Annual Construction Law Conference

February 20 & 21, 1997

Austin, Texas

Pamela D. Nielson

Sheinfeld, Maley & Kay, P.C.

Austin, Texas

TABLE OF CONTENTS

I. SCOPE OF ARTICLE 1
II. COMPREHENSIVE GENERAL LIABILITY POLICIES 1
    A. Obtaining the Insurance Policy 1
    B. The Duty to Defend 4
    C. The Indemnity Obligation - Burdens of Proof 5
III. INDEMNITY ISSUES - COVERAGE PART A 7
    A. The "Occurrence" Requirement 7
    B. The Business Risk Exclusions 8
    C. The "Products-Completed Operations" Coverage 11
    D. Contractual Liability Jnsurance 16
    E. Environmental Coverage Issues 18
    F. Trigger of Coverage 19
IV. INDEMNITY ISSUES - COVERAGE PART B 20
V. SELECTED ISSUES RELATED TO THE CONSTRUCTION INDUSTRY 21
    A. Joint Venture Issues 21
    B. Import of the Gandy Decision 22

APPENDIX A

Abstract

This article provides an overview of some of the issues involved in insurance co construction-related liabilities. Section II provides introductory comments on the structure of the commercial general liability policy (CGL) and the scope of the defense/indemnity obligations of the insurer. Sections LU and IV examine key coverage issues that arise in construction coverage litigation under Coverage Parts A and B of the CGL policy. Section V presents selected issues of particular importance to the construction industry.

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