Myers v. United Ohio Ins. Co. (5th Dist., 1-26-12), 2012-Ohio-340
CONSTRUCTION, FAULTY WORKMANSHIP, OCCURRENCE, "YOUR WORK" EXCLUSION, MOLD EXCLUSION, CONSEQUENTIAL DAMAGES
Citing Environmental Exploration Company v. Bituminous Fire & Marine Insurance Co., the Court held that defective workmanship does not constitute an accident or occurrence under a commercial general liability policy. If the policy is construed as protecting a contractor against defective workmanship, the insurer becomes a guarantor of the insured's performance under the contract, and the policy becomes a performance bond. (citations omitted.) The policy does not insure an insured's work itself, but rather insures the consequential risks that stem from the insured's work. (citations omitted.)
General commercial liability policies are not intended to insure the normal, frequent or predictable costs of doing business. Such policies are intended to insure the risks of an insured causing damage to other persons and their property, but are not intended to insure the risks of an insured causing damage to the insured's own work. Id. We found that there was no "occurrence" within the meaning of the policy, and therefore, no coverage. READ THE CASE
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