Controversy still exists as to whether faulty or defective work, in the context of construction defect claims, constitutes an occurrence as defined in the CGL policy.  Construction defect lawsuits routinely include causes of action for breach of contract and various torts, and controversy still exists, as well, as to whether a breach of contract is covered even though it claims the same damages as the tort cause of action.

Occurrences often result in property damage.  Does a defect, alone, equal property damage? Is there a difference between damage to the insured's work and damage to other work or property that is caused by the defect? Does tear-out, necessary to correct defective work, constitute property damage as defined in the CGL policy?

By the end of this session, you should be able to:

• Describe how different jurisdictions treat faulty workmanship is an occurrence.
• Discuss the difference between breach of contract and tort actions and whether it matters for coverage.
• Determine whether defects, alone, are considered property damage.
• Discuss the importance of determining what property is damaged in the analysis of occurrence and property damage as these terms are defined in the policy.