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Bill to Require Inclusion of “Faulty Workmanship” of Contractor in Definition of “Occurrence” in Commercial Liability Policies Introduced in New Jersey Assembly



by Julia C. Talarick
Coughlin Duffy LLP - Morristown Office

Kevin E. Wolff
Coughlin Duffy LLP - New York Office

December 10, 2013

Previously published on December 4, 2013

On November 25, 2013, Assemblyman Gary S. Schaer introduced a Bill, ASSEMBLY NO. 4510, to the Financial Institutions and Insurance Committee of the Assembly that, if passed, will require insurers to define the term “occurrence” in commercial liability insurance policies issued to contractors to include “property damage or bodily injury resulting from faulty workmanship.” According to the interpretative Statement that accompanied the Bill, it is intended “to reduce confusion in industry practices by resolving coverage issues arising from the holdings in various court decisions” by requiring that the definition of occurrence address “both accidents and faulty workmanship....” The Bill specifically states that it is not intended to restrict or limit the number or types of exclusions that can be included in a commercial liability insurance policy.


 

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Julia C. Talarick
Kevin E. Wolff
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