NJ Appellate Court Rules That Consequential Damages Caused By Subcontractors’ Poor Workmanship May Be Covered By Developers’ Liability Insurance

In a recent case, Cypress Point Condominium Association, Inc. v. Adria Towers, LLC, a New Jersey appellate court has provided potential additional sources of recovery for community associations involved in construction defect litigation against developers, as well as potential greater financial protection for such developers. In an opinion approved for publication on July 9, 2015, the Appellate Division held that the Insurance Service Office (ISO) 1986 standard commercial general liability insurance policy does not bar coverage to developers in association construction defects cases alleging consequential damages based upon poor workmanship by subcontractors.      Read the article…………