"Event" as Defined in CGL Policy
In Adair Group Inc. v. St. Paul Fire and Marine Insurance Co., the court determined the meaning of an "event" in a CGL policy. In the policy, an "event" was defined, in part, as an "accident." Adair claimed the policy covered claims resulting from "[t]he unanticipated failure of some of Adair's subcontractors to perform their work in a workmanlike manner." Both the trial court and the Court of Appeals disagreed, finding that such a claim was a breach of contract, and was not an accident or covered event under the policy. It did not matter if it was the subcontractors or the insured who failed to perform as required. The court concluded that "the deficient performance of Adair's subcontractors is not in itself an event triggering application of the insurance policy" and therefore, summary judgment was proper.
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