Expanded Definition Of "Occurrence" Did Not Convert Construction Defect Into Insured Claim

The terms of an owner-controlled insurance policy defined "occurrence" as "an accident, event, or happening, including continuous or repeated exposure to substantially the same general harmful conditions."  A New York appellate court has held that this arguably expanded definition was still not sufficiently broad to encompass curtain wall deficiencies and improper workmanship.  So there was no insurance coverage for the damages and remedial work.

The project was a 42-story tower in Jersey City, and a portion of the curtain wall fell from the eighth floor level during construction.  A consultant found numerous deficiencies in the pipe framing system for the curtain wall.  The owner sued the contractor and curtain wall sub, and the two contractors initially convinced the OCIP carrier to defend them against the owner's claims, which the carrier did under a reservation of rights.  The carrier then sought declaratory relief, and in the coverage lawsuit argued that the