Whether or not insurance will provide a defense and indemnity in a construction defect lawsuit presents one of the more complicated legal questions faced by insurance and construction law practitioners alike.
The coverage issues are highly fact-dependent, the contract clauses vary from construction project to construction project, and the law is constantly in a state of flux. Moreover, add to these factors cases in which discovery of the defects only takes place several years after project completion—so-called “latent defects”—and the coverage question becomes even more complex.
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