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Judge: Insurer Owes Defense For Covered Water Claims, Noncovered Mold Claims

Mealey's (August 31, 2016, 9:57 AM EDT) -- SAN FRANCISCO — A commercial general liability insurer owed a defense in an underlying action for both covered water damage claims and noncovered mold damage claims, a California federal judge ruled Aug. 19, finding that neither a mold exclusion or a “continuous or progressive injury or damage” exclusion applies to bar coverage (Saarman Construction Ltd. v. Ironshore Specialty Insurance Co., No. 15-03548, N.D. Calif.; 2016 U.S. Dist. LEXIS 110921).

(Order available. Document #69-160902-011R.)

In 2006, the Westborough Court Condominiums Homeowner’s Association (HOA) hired Saarman Construction Ltd....
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