So You Think You Know The Law

August 2016

True or False? Incorporation of an insured’s defective work into another’s building constitutes “property damage” that is always covered under a commercial general liability policy. (False) True or False? Incorporation of defective work performed by an insured into another’s building that causes physical damage to other work or property is covered under a commercial general liability policy. (True) True or False? Failure of an insured’s product to perform as intended, even though it damages no other work or property, is always covered under a commercial general liability policy. (False) True or False? Commercial general liability insurance policies provide a warranty that the insured’s work is not defective and will perform as warranted. (False) True or False? Diminution in value of another’s structure or product because it incorporates the insured’s defective work or product constitutes property damage that is always covered under a commercial general liability policy. (False)

Please Note: This article is necessarily general in nature and is not a substitute for legal advice with respect to any particular case. Readers should consult with an attorney before taking any action affecting their interests.