Properties Magazine March 2017 : Page 44

LEGAL PERSPECTIVES Navigating property laws & regulations We Have You Covered: General Liability Policies I ALLISON TALLER REICH n 2012, the Ohio Supreme Court handed down a decision in Westfield Ins. Co. v. Custom Agri Systems, Inc . (Custom Agri) . Custom Agri emboldened insurance companies to take a much more aggressive position in disputes where there were allegations that their insureds performed defective work. Insurance companies sought to avoid paying for these losses or even providing a defense to their insureds. They relied on Custom Agri for the position that claims of defective work were never covered under a commercial general liability (CGL) policy of insurance because “defective work” did not constitute an “occurrence.” surrounding the Custom Agri decision in Ohio Northern Univ. v. Charles Constr. Serv., Inc. (ONU) . In short, ONU con-firmed that Custom Agri isn’t the “be all end all” of coverage disputes because not all of the terms and conditions of a CGL policy — i.e. exclusions and excep-tions — were considered in that case. For example, the Custom Agri decision did not address the “Products-Completed Operations Hazard” provision. In ONU , the owner discovered water intrusion and damage after the proj-ect was completed. The owner sued the contractor and the contractor’s MARK RODIO In general, a CGL policy provides insurance coverage — including defense and/or indemnity — where an “occurrence” causes damage or injury to person(s) or property. Occurrence is defined as an accident, including continuous or repeated exposure to substantially the same general harm-ful conditions. Following Custom Agri , construction industry stakehold-ers were left wondering about the scope of coverage availability in their insurance programs. On January 23, 2017, the Third District of Ohio clarified many of the questions Everything For Concrete, Except Concrete, Since 1910 THE LAKEWOOD SUPPLY COMPANY • Concrete Restoration & Repair Materials • Granular Concrete Colors • Rebar Detailing/Fabrication & Assemblies CONCRETE REPAIR PRODUCTS 216.898.1113 4901 West 150th Street, Cleveland, Ohio 44135 • 44 Properties | March 2017

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