Construction defect claims combine technical complexity, multi-party liability, and extended tail development in ways that test even experienced claims teams.
A single commercial building defect claim may involve the general contractor, multiple subcontractors, an architect, a materials supplier, and a property developer -- each with separate insurers, separate policy periods, and separate coverage defenses. Coordinating defense strategy and allocation across a web of defendants is a specialized capability.
The increase in construction activity over 2021-2024 is beginning to generate a claims tail as buildings age and defects emerge. Carriers with construction defect exposure in their commercial lines portfolios are reviewing reserve adequacy for this developing pattern.
Coverage disputes -- particularly around the owned property exclusion, the expected-or-intended doctrine, and pollution exclusions applied to construction defect contexts -- continue to generate significant appellate court activity.
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