The article discusses the unintentional error or omission provision, along with case law so as to better understand this item. Sample error or omission provisions are noted for the benefit of the reader.

The cited legal decisions this month come from several federal courts. The District Court from the Eastern District of Louisiana had to decide if the faulty workmanship exclusion in the policy of the named insured applied to a third party that had performed work on the named insured's property. The U.S. Court of Appeals, Ninth Circuit, addressed an appeal from a district court's holding that an insurer did not have a duty to defend. The issue revolved around the difference between a written contract and agreement and whether these terms are synonymous. In a similar case, the U.S. District Court for the Southern District of California handled a case wherein additional insured status depended on the clarification of the difference (or lack thereof) between a written contract and an agreement. The final case comes from the U.S. District Court for the Southern District of Texas and pertains to an argument between two insurers over commercial construction coverage, with the coverage dependent on the interpretation of an exclusion.

Questions and Answers

When is the difference between the guaranteed replacement cost amount and the actual cash value amount paid? See Guaranteed Replacement Cost and Repair or Replacement. Is there coverage for the removal of skunk odor from a dwelling when not all areas were in direct contact with the spray? See House Permeated by Skunk Odor. Does the renting of a property to in-laws make them insureds? See In-laws Are Not Insureds.When there are multiple mortgages on a home, what is the obligation of the carrier to pay the secondary, tertiary, and subsequent mortages? See Multiple Mortgagees. When a pool cover is held in place by concrete blocks and the fall of the cover and blocks damages the liner, is there coverage? See Pool Liner and Concrete Block. When an insured rents space to a neighbor for storage, is there coverage for the tenant's property? See Theft of Tenant's Property. When an insured's boat is located at an other than the residence premises, is there coverage for property stolen from the boat at that other location? See Theft of Property from Watercraft.

Electronic Data Processing Coverage

This article discusses the electronic data processing coverage provided by AAIS, American Association of Insurance Services. Forms IM 7200 and IM 7202 are discussed. See Electronic Data Processing Coverage.