Texas Supreme Court Rejects Insurers "Contractual Liability" Exclusion Arising from Construction Defects
By: Neil Wilcove
On January 17, 2014, the Texas Supreme Court ruled that insurers cannot deny coverage to a general contractor in a construction defect case under the “contractual liability” exclusion. In Ewing Construction Company v. Amerisure Insurance Company, Amerisure argued that Ewing assumed the liability in its contract to perform its work in a “good and workman like manner” and by not performing its work in such a manner, any claims for construction defects were not covered under the “contractual liability” exclusion to the CGL policy.
Like many other jurisdictions have recently, the Texas Supreme Court rejected the argument and found coverage for Ewing.comments powered by Disqus