The risks and losses associated with construction operations and property development push many insurance concepts to their limits. As a result, the construction industry has long been at the forefront of many complex insurance coverage issues and both drives but also depends on market standards to assess and adequately address risks. SDV closely monitors insurance markets for changes that impact contractors and developers, particularly through our Subcontractor Insurance Review Program (“SIRP”) services.[1] This also allows SDV to spot emerging issues in the way markets address insurance concepts critical to the construction industry.

One area the markets have been moving away from policyholder expectations is Commercial General Liability (“CGL”) coverage for continuing or progressive injury or damage. CGL policies generally cover defense and indemnity for third-party claims because of “bodily injury” or “property damage.” The primary CGL requirements are that such injury or damage must be caused by an “occurrence” (i.e., an accident) and that the injury or damage must occur during the policy period. Critically, CGL policies do not require the “occurrence” to take place during the policy period for coverage to be triggered. This makes sense as there are many circumstances where injury or damage might not manifest until after the policy period in which the “occurrence” or accident transpired.