Contractual Requirement for CGL Coverage

An insurer recently denied coverage for a claim where property damage was caused by a subcontractor on a job site of our insured. The reason given by the insurer was that there was no written contract between the insured and the subcontractor; there was an oral agreement. Is the insurer correct?

Michigan Subscriber

No, there is no need for a written contract. When the CGL form deals with the work of the named insured, it defines that as work or operations performed by the named insured or on behalf of the named insured. There is no requirement for a written contract in the standard CGL form.

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