For years, some state courts and insurance companies have been telling contractors that the construction defect claims they face aren't covered by their insurance because faulty work is not an "accident" that insurance is intended to guard against. This situation is rapidly changing, however, as more and more courts are concluding that defective construction is an "accident." This has opened the way for these claims to be covered by insurance.
There are four questions that must be answered to determine if a construction defect claim is covered by a contractor's standard commercial general liability insurance policy: