Subcontractors Faulty Work, are the Courts Changing the Rules?

It has been fairly consistent over my insurance career that the CGL policy will cover faulty work done by a named insureds subcontractor. This exception to the faulty work exclusion has stood up in claims that I have experienced over the years. However this may be changing. A recent PA. case had the courts denying coverage from faulty work of a sub. There is also a lot of talk amoung State jurisdications to follow suit on this subject. The CGL policy language is very clear on this as "damage to your work" exclusion does not pertain to work performed on your behalf by a subcontractor. So why is it changing?  I am not sure but I do know this will be problematic for agents ans brokers if this trend continues. Insureds who use subcontractors could always be assured by their agents that if the sub screwed up then the insurance co. would pay. This may not be the case in the very near future. Until next time be careful out there and know your risks. K

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