North Dakota Supreme Court Clarifies Breadth of Contractual Liability Coverage

Businessmen signing contract over coffee

Commercial General Liability (“CGL”) policies generally exclude an insured’s contractual assumption of another party’s liability.

October 30, 2018
Michael S. Levine & Latosha M. Ellis - Hunton Insurance Recovery Blog

North Dakota’s highest court delivered a blow to Mid-Continent Casualty Company in Borsheim Builders Supply, Inc. v. Manger Insurance Co., ruling that a contract between a policyholder and general contractor fit the insured contract exception of contractual liability.

Commercial General Liability (“CGL”) policies generally exclude an insured’s contractual assumption of another party’s liability. The exclusion typically contains an exception for what is known as an “insured contract.” However, many policyholders and insurance claims personnel often miss the significance of the insured contract exception. This was the case in Borsheim.

Mr. Levine may be contacted at mlevine@HuntonAK.com



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