New Jersey Supreme Court Finds Coverage Under a Developer’s Commercial General Liability Policy for a Subcontractor’s Faulty Workmanship

On August 4, 2016, the New Jersey Supreme Court issued a unanimous decision in a case regarding insurance coverage that could have lasting impact on developers, contractors, and subcontractors. In Cyprus Point Condo. Ass’n, Inc. v. Towers, 2016 N.J. LEXIS 847 (Aug. 4, 2016), the Supreme Court ruled that under a property developer’s commercial general liability (“CGL”) insurance policy, a subcontractor’s faulty workmanship constituted “property damage” and the event resulting from that damage — water from rain flowing into the interior of the property — was an “occurrence” under the policy so the loss was covered.       Read the article……………