CGL Coverage Includes Subcontractor Workmanship
Published: Mar 07, 2017 by Luther LiggettA Court of Appeals found against a comprehensive general liability (CGL) insurer when an owner suffered water damages caused by faulty workmanship of a subcontractor.
This result is opposite recent Ohio Supreme Court precedent which found that CGL coverage cannot be used for prime contractor workmanship, as contractors business risks are not covered by insurance.
The key issues are whether the contractor controlled the process leading to the damages and whether the damages were anticipated. Westfield Ins. Co. v. Custom Agri Sys., 133 Ohio St.3d 476, 2012-Ohio-4712.
In a significant departure from the standard, the Court of Appeals for Hancock County noted that the exception to that exclusion is when the work is performed by a subcontractor, causing property damage.
Ohio Northern Univ. v. Charles Constr. Serv., 3d Dist. Hancock, 2017-Ohio-258
If you have questions, please do not hesitate to contact attorney Luther Liggett of Graff & McGovern at 614-228-5800, ext. 6.