Ninth Circuit Finds Defects in the Construction of a “Known-Loss” Exclusion

A mason who performed work on a residential project was notified in 2006 that cracks had developed in his work. Several months later, the mason purchased a commercial general liability policy that expressly excluded coverage for property damage, if an insured “knew that the … damage had occurred, in whole or in part.” In 2007, the project’s general contractor sued the mason, claiming that defects in his work had caused the property damage that was the subject of a suit by the project’s residents.   Read the article………..