Court of Appeals Discusses the Difference Between “Claims-Made” and “Occurrence-Based” Insurance Policies

Glasses lying on insurance policy document

In construction contracts, insurance provisions are nearly as important as scope, price and time.

May 31, 2021
Garret Murai - California Construction Law Blog

As most contractors know, scope, price and time are the “big” three in any construction contract. Nearly as important, however, are the insurance provisions. Patricularly, when things go bad on a construction project. As the next case, Guastello v. AIG Specialty Insurance Company 61 Cal.App.5th 97 (2021) discusses, the difference between “claims-made” versus “occurrence-based” coverage can be extremely important.

The Guastello Case

In 2003 and 2004, subcontractor C.W. Poss Inc. built retaining walls in the Pointe Monarch housing development in Dana Point, California. Poss performed all related excavation, ground and grading work.

In 2006, Thomas Guastello purchased a home in the development, and in January 2010, a retaining wall close to his lot suffered a massive failure that causing over $700,000 in damages.

Mr. Murai may be contacted at gmurai@nomosllp.com



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