I recently joined David Pryce, a Senior Partner at UK-based Fenchurch Law, for a lively discussion of GLG’s precedent-setting insurance coverage case, South Capitol Bridgebuilders v. Lexington Insurance Company. This victory on behalf of our policyholder client was the first-ever court decision to address the London Engineering Group’s LEG3 endorsement found in many builders risk policies, confirming that the popular endorsement provides coverage for physical damage caused by the insured’s defective workmanship, design, or materials.
During the webinar, David Pryce and I talked through several issues related to the case, including:
- It’s important to understand the scope of coverage and the risks the policy was designed to address. A general liability policy is very different from a builders risk policy.
- It’s crucial to read every clause of the insurance policy contract, both holistically and in a manner that maximizes insurance coverage.
- Perhaps the most important lesson is that when representing a policyholder, one needs to try to find an explanation of the occurrence that falls within the scope of the coverage afforded by the policy. Goodman Law Group wins because we do this.
This subject is important to brokers who sell builders risk policies and to their clients, as the LEG3 endorsement provides a substantial expansion of the coverage available for a common cause of losses on large construction projects.
Whether you’re curious about the future of the LEG3 clause specifically or want to learn more about the state of builders risk policies in general, I encourage you to view the webinar here: https://bit.ly/4eAo6vP
