Will Your Insurance Help? The Coming Wave of Defects Litigation — Contractors should not accept insurer exclusions without taking a closer look

February 11, 2011
Linda D. Fornfeld and Marla H. Hanemitsu

In the January/February 2011 issue of AGC Constructor, Dickstein Shapiro LLP Insurance Coverage Partners Linda D. Kornfeld and Marla H. Kanemitsu wrote an article entitled, Will Your Insurance Help? The Coming Wave of Defects Litigation: Contractors, subcontractors and other companies involved in the construction boom of the early 2000s may soon find themselves the subject of expensive construction defects litigation. Many states, including California and Florida, have 10-year statutes of limitation for latent construction defects claims and lawsuits are often filed in the ninth year, just before the statute of limitations expires. This means that in the next five years, the construction industry may be flooded with construction defects suits.Insurance can be an invaluable resource for defendants caught in the flood. If sued, a company should immediately review all applicable insurance policies and promptly give notice of the suit to its insurers. But identifying the policies and giving notice is rarely the end of the story. Insurers frequently respond to construction defect lawsuits by denying coverage. Some common insurer arguments and potential policyholder counter-arguments are discussed in the complete article.Read the full story...Reprinted courtesy Linda D. Kornfeld and Marla H. Kanemitsu, Dickstein Shapiro LLP, in AGC Constructor. Ms. Kornfeld can be contacted at kornfeldl@dicksteinshapiro.com and Ms. Kanemitsu at kanemitsum@dicksteinshapiro.com.


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