CGL policy does not cover poor workmanship claims
NATIONAL AMERICAN INSURANCE COMPANY v. OKEMAH MANAGEMENT COMPANY,
2008 OK CIV APP 58
The insured (OKEMAH) was a sub contractor on a building. The owner sued, claiming that the building leaked because of poor workmanship. Naico filed a declaratory judgment action, claiming it was not required to defend Okemah because the CGL policy covered negligence claims, not breach of contract type claims; or that various exclusions precluded coverage. The exclusions included 1) Contractual Liability Exclusion; 2) Damage to Your Product Exclusion; 3) Damage to Your Work Exclusion; 4) Building Related Illness Exclusion; 5) Fungi or Bacteria Exclusion; and 6) Exterior Insulation and Finish Systems (EIFS) Exclusion.
The court found the EIFS exclusion applied; it did not require the insured to install or apply all 5 elements of the EIFS; and the court did not reach the other issues. Since the claim was excluded, there was no duty to defend.
2008 OK CIV APP 58
The insured (OKEMAH) was a sub contractor on a building. The owner sued, claiming that the building leaked because of poor workmanship. Naico filed a declaratory judgment action, claiming it was not required to defend Okemah because the CGL policy covered negligence claims, not breach of contract type claims; or that various exclusions precluded coverage. The exclusions included 1) Contractual Liability Exclusion; 2) Damage to Your Product Exclusion; 3) Damage to Your Work Exclusion; 4) Building Related Illness Exclusion; 5) Fungi or Bacteria Exclusion; and 6) Exterior Insulation and Finish Systems (EIFS) Exclusion.
The court found the EIFS exclusion applied; it did not require the insured to install or apply all 5 elements of the EIFS; and the court did not reach the other issues. Since the claim was excluded, there was no duty to defend.
