OREGON COURT OF APPEALS RENDERS IMPORTANT DECISION ON VARIOUS COVERAGE ISSUES ARISING OUT OF CONSTRUCTION DEFECT LAWSUIT

In an effort to stem the flood of claims for coverage arising out of construction defect lawsuits, insurers have included various exclusions and endorsements to limit coverage for such claims in their commercial general liability policies issued to construction contractors and subcontractors. One such exclusion, titled the “Multi-Unit New Residential Construction” exclusion, has been included in policies for about the past decade or so. This exclusion generally precludes coverage for loss, related directly or indirectly, to operations, completed operations, products and/or work products involving property intended, in whole or in part, for habitation of more than one single family residence, such as condominiums, town houses/homes, apartments or other developments comprised of more than one single family residence.

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