By David A. O’Neill, Director of Investigations, PolicyFInd
The ruling of the United States District Court for the Northern District of Indiana’s March 16, 2011 on a motion for summary judgment from the Lake County Superior court case styled General Casualty Insurance v. Compton Construction, Inc. and Mary Ann Zubak could have profound effect on contractors’ need to locate and maintain their historical insurance policies.
A claim against a contractor for the negligent acts of its subcontractor some 7 years earlier was found to be covered under the contractor’s general liability insurance policy. The allegations in this case were that defendant Mary Ann Zubak was damaged by the negligent acts of the subcontractor hired by general contractor, Compton Construction Co. to excavate and set the foundation for her new home. When the house shifted and buckled, Ms. Zubak brought a claim against Compton Construction, who tendered the claim to its general liability insurance company, General Casualty Insurance. After General Casualty declined to defend Compton, Ms. Zubak filed suit in Superior Court against Compton, alleging negligence, breach of contract and breach of warranties. Continue reading “INDIANA CONSTRUCTION DEFECT COVERAGE LAW CHANGES WILL SEND CONTRACTORS IN SEARCH OF LOST GENERAL LIABILITY POLICIES”