Insured’s Faulty Work Is Not A Covered ‘Occurrence,’ Illinois Federal Judge Says
Mealey's (April 1, 2016, 1:03 PM EDT) -- CHICAGO — Insurance policies do not cover a settlement of an underlying claim against a subcontractor stemming from its defective workmanship, an Illinois federal judge held March 31, because claims of an insured’s faulty work resulting in damage to its own work do not constitute an “occurrence” causing covered “property damage” (Allied Property & Casualty Insurance Co. and AMCO Insurance Co. v. Metro North Condominium Association, No. 15-3925, N.D. Ill.; 2016 U.S. Dist. LEXIS 43952).
(Memorandum opinion and order available. Document #69-160506-003Z.)