Which Policy Covers That? Timing Considerations When Placing CGL Carriers On Notice Of A Construction Defect Claim

For a construction contractor, receiving notice of a claim for damages associated with the contractor's work can be a daunting prospect. Particularly if the contractor's first notice of the claim is a lawsuit naming the contractor as a defendant. Fortunately, most contractors do (and all contractors should) maintain commercial general liability (CGL) insurance to cover claims for damages or injuries related to the contractor's work. CGL insurance (typically) covers allegations of damage because of defective work, defending the insured against potentially covered claims and settling covered claims. Of course, many factors can affect this basic coverage analysis. For example—what happens when bodily injury or property damage occurs after the policy in place while the contractor did its work expires?