ALERT

When a general liability policy covers the costs of repair or replacement of defective work, does it actually provide coverage for the defective product, the defective installation, or both? The issue was recently addressed by Florida’s Supreme Court. While such policies do provide coverage for the costs of repair or replacement of defective work which results in damage to property, the Court determined that an important critical consideration must be whether the product was defective before it was even installed. If so, there may well be no coverage for either the product or the installation.

 

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