If You Have A Dispute With A Contractor - By: Samuel D. Bornstein

A recent decision in New Jersey reviewed the coverage limitations on Comprehensive General Liability policies (CGL).

A condominium association recovered a judgment against several contractors whose work in the construction of condominiums was defective.

The contractors had CGL insurance, but the insurance companies claimed that defective workmanship was not covered by the policies.

The trial judge agreed with the insurance carriers. The CGL policies provided for coverage under certain circumstances. Defective workmanship where the damages claimed are the cost of correcting the work itself did not meet the CGL policy definitions for "property damage" or an "occurrence".

The decision was appealed to the Appellate Division.

YOU BE THE JUDGE: Does a CGL insurance policy furnished by a contractor cover the cost of correcting defective workmanship?

The Appellate Division agreed with the trial judge.

Generally speaking, CGL policies provide coverage for the risk of injury to people and damage to property caused by faulty workmanship; but no coverage for the cost of correcting the faulty work. For the most part, the decision followed the policy interpretation announced by the New Jersey Supreme Court in 1979.

Of course businesses and homeowners should require contractors to give a certificate of insurance naming them as additional insurers before starting work. But remember these certificates do have limitations.

The decision points out that a courtroom can bring justice and may be the only way to protect your rights. We know courtrooms; we have harnessed the power of the law in courtrooms to bring justice for our clients for decades. Please contact us to discuss how we can help you in a new lawsuit or provide a "second opinion" about your pending lawsuit. There is no obligation for the initial consultation.

The New Jersey Law Firm and its attorneys are dedicated to client-driven results and protecting individual rights and business interests. For 40 years, the Law Firm has been recognized for sound legal judgment, immigration laws, real estate cases, litigation, contracts and advocacy in serving the transactional needs of both individual and business clients. If you need assistance with business or corporate formation and operations, or you seek legal advice about insurance defense, arbitrations, wrongful termination, discrimination, personal injury, environmental issues, bankruptcy,, insurance, civil rights and other litigation alternatives, the Law Firm has the comprehensive experience, foresight, skills and talent to assist you to safeguard your assets, interest and investments. The New Jersey Law Firm's highly devoted, motivated, experienced, skilled lawyers/attorneys and effective legal professionals are always there to assist you.

About the Author

Author, Samuel D. Bornstein, is associated with the law firm (http://www.bornsteinlawfirm.com/) and has 40 years of experience in representing individuals and a wide variety of businesses from Fortune 100 companies that need specialized assistance to smaller companies that look to the firm as their "in house" lawyer for general day-to-day advice. The firm is experienced with transactional work and litigation, emphasizing corporate and partnership operations, employment and workplace law.

Article Directory Source: http://www.articlerich.com/profile/Samuel-D--Bornstein/73667

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