A commercial general liability insurance policy does not cover property damage to an insured’s own completed work under the plain language of a “your work” exclusion, which applies to work included in the “products-completed operations hazard.”
A Miller-Shugart settlement agreement that does not allocate between claims that are covered and not covered by the insurance policy is not per se unreasonable and unenforceable against the insurer.
Determining the reasonableness of an unallocated Miller-Shugart settlement agreement is a two-part inquiry that first examines the overall reasonableness of the settlement and then determines how a reasonable person in the position of the insured would have valued and allocated the covered and uncovered claims at the time of the settlement.
Joe Junfola is principal of Junfola Claim Consulting (“JCC”) and Construction Defect
Claim Resources (“CDR”). JCC provides commercial claim consulting services
including coverage analysis, mediation representation, claim audits, training, and other
services. CDR provides a solid and reliable information and educational resource for
insurance, risk management, construction, and design professionals in a world where
construction defect claims proliferate.
View all posts by Joseph M. Junfola, CPCU