Water Damage Caused By Insured’s Faulty Work Is An ‘Occurrence,’ Judge Rules

Mealey's (February 10, 2016, 11:37 AM EST) -- BIRMINGHAM, Ala. — A commercial general liability insurer failed to establish that it has no duty to defend or indemnify insureds in an underlying construction defects lawsuit, an Alabama federal judge held Feb. 9, finding that alleged water damage caused by insureds’ faulty workmanship was an “occurrence” (Employers Mutual Casualty Co. v. Kenny Hayes Custom Homes, LLC, et al., No. 15-0054, S.D. Ala.; 2016 U.S. Dist. LEXIS 15340).

(Memorandum opinion and order available. Document #69-160304-008Z.)

On May 19, 2014, Joe and Tammy Nelson sued Kenny Hayes...
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