Our contractor client faced a substantial claim for property damage from a project owner, with the responsible subcontractor’s initial insurance offer covering less than 10% of the potential liability. Caught between the owner’s demands and limited subcontractor insurance coverage, our client turned to us to navigate this challenging situation. Recognizing the potential for broader coverage, we strategically targeted the responsible party’s Commercial General Liability (CGL) policy – focusing on provisions that contradicted the insurer’s narrow interpretation of the “Your Work” exclusion (often found in exclusions j(5), j(6), k, or l of standard CGL policies) and “that particular part” exclusion. We meticulously documented the full extent of the damage, emphasizing “rip and tear” damage and impacts to adjacent property features demonstrably beyond the original scope of work. By highlighting damage to surrounding materials like flooring, flashing, drywall, and structural framing, we successfully argued that the damage extended far beyond “that particular part” the subcontractor was hired to address. This creative approach successfully triggered the responsible party’s full general liability coverage, allowing our client to satisfy the upstream claim while mitigating their own financial exposure. The result was a favorable settlement that bridged the gap between our client’s upstream and downstream liabilities.
