See the designated article in the Bulletins.

The court cases in the Dec Page come from Wisconsin, U.S. circuit courts, and Minnesota.

The Court of Appeals of Wisconsin addressed a coverage question pertaining to a contractors E&O policy. The Seventh Circuit Court of Appeals offers an opinion defining just what a “counterfeit” is considered to be when it comes to coverage for a fraud loss. The Court of Appeals of Minnesota in its ruling emphasizes the point that the general liability policy applies to property damage as defined, and an economic loss claim is not a property damage claim. In the final case, the Fourth Circuit Court of Appeals clarifies the primary purpose of the Your Work exclusion and what happens when the subcontractor exception to that exclusion is eliminated.

Questions and Answers

If there was not an accident that caused mechanical breakdown to covered equipment, a spoilage loss would not be covered. See Spoilage Loss Requires Mechanical Breakdown.

Discovery of asbestos while remodeling is not a covered cause of loss under a CP 10 30. See Business Income Coverage Requires Direct Physical Damage or Loss

Contractors' Errors and Omissions Coverage

Contractors' errors and omissions coverage, available by separate policy or by endorsement to a commercial general liability policy, provides coverage, usually a small amount, for property damage to your work or your products. This coverage may close a gap created by the business risk exclusions of the CGL policy. A new article on this topic can be seen here: Contractors' Errors and Omissions Coverage.

Farm Liability Endorsements

The Farm Liability Endorsements article has been updated. See Farm Liability Endorsements.

Utility Services Direct Damage and Time Element Losses and Coverages

A new article that discusses the nature and scope of the utility services exclusion and coverage endorsements available with the ISO property insurance program was added to FC&S. Utility Services—Direct Damage, CP 04 17 06 07 is necessary if coverage is desired against physical loss or damage to covered property stemming from interruption of utility service on or away from the described premises. See the article here: Utility Services Direct Damage and Time Element Losses and Coverages.