In a unanimous decision, the Mississippi Supreme Court ruled February 11 that contractors are covered under their commercial general liability policies for subcontractor work later found to be defective, adding momentum to a national battle being fought state by state over whether insurers are actually providing coverage defined and paid for in those policies.
“It has implications for the rest of the country because the policies being written and enforced throughout the U.S. are identical to the policies the Mississippi court has addressed,” says Mike Kennedy, general counsel of the Associated General Contractors.