CGL Insurance Information

Information About CGL Insurance in the State of Colorado

The majority of contractors, design professionals, builders and developers have purchased liability insurance to ensure that they are adequately covered in the case of a lawsuit. Unfortunately, these policies are often inadequate and contain exclusions which prevent the insurance company from being held liable to defend. When this occurs, a qualified construction litigation attorney can help you through the litigation and mediation process and handle all insurance liability issues.

In general, there are three types of insurance policies available to construction and design professionals that cover construction projects:

• Comprehensive General Liability Policy (CGL)
• Construction Professionals Liability Policy (architects and engineers)
• Specific Project Liability Policy (or and Owner’s Controlled Insurance Policy)

While a construction litigation attorney can help you manage all of your insurance needs by employing thorough risk management strategies, there are many situations where CGL issues still arise.

A CGL insurance policy is usually comprised of a declaration page, an endorsement page, definitions and insuring clauses, exclusions and exemptions and specific conditions to coverage. These policies are often highly technical and difficult to decipher properly. Having an experienced construction litigation attorney read through your CGL insurance policy will ensure that you are not left uncovered under any circumstance.

Insurance companies often place special exemptions and exclusions in the policy to limit their liability. The majority of these exclusions and exemptions limit what was initially granted to the insured in the insuring clause above. In fact, many insurance companies do not want to replace the defective work provided, because they believe this is simply one of the risks of being a contractor. As a result, many of these exclusions actually exclude the cost of repairing the defective work or materials. This can have dangerous consequences for design professionals, builders and developers who may find themselves without adequate coverage just when they need it the most.

There are two main types of exclusions that affect construction professionals greatly and can cause them to be denied coverage for a construction defect claim.

• Contractually assumed liabilities
• Damage to the work product

Even though these exclusions or exemptions are intended to limit the insurance company’s liability, the language in these policies is often so vague that there may be room for interpretation. Each year, numerous court cases arise due to coverage disputes and a qualified construction litigation attorney can help ensure that your interests are protected during this process. Even if an insurance company has denied your claim and refused to defend, a construction litigation attorney is on your side to help limit your liabilities and protect all of your investments.

If you have any questions regarding your CGL policy coverage or you are about to start a new CGL policy, it is important to discuss these concerns with a qualified construction litigation attorney before proceeding.

Colorado construction lawyer Jeffery A. Knoll is committed to resolving issues related to your CGL Insurance. If you have questions about protecting yourself or your company from costly construction litigation, our law firm can help. Your initial consultation is always free. We are Colorado’s construction litigation law firm. Call today at (303) 985-1185.