Philadelphia Construction Law Blog

In one of the most impactful decisions of the last decade for both the insurance and construction industries, the Pennsylvania Supreme Court ruled in Kvaerner U.S., Inc. v. Commercial Union Insurance Co., that defective work was not an occurrence under a commercial general liability insurance policy when the underlying claims “triggering” coverage sound in contract. Courts in other jurisdictions, however, have been methodically swinging in the other direction. It may ultimately spell the end of the narrow reading the Kvaerner decision imposes on CGL policies in Pennsylvania.