Insurance Coverage and Bad Faith Litigation

The Faulty Workmanship Exclusion

Courts becoming less lkely to draw distinction between 'product' and 'process'

, The Connecticut Law Tribune

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Builder's risk and other first-party coverages have traditionally excluded loss or damage caused by "faulty workmanship." A principal point of contention in litigation over this exclusion has been whether the exclusion applies to loss or damage caused by a finished product (damage to a desk when a poorly made ceiling falls on it) or the process of workmanship (damage to a windowsill during the process of repairing the window), or to both. In light of recent decisional law, courts appear less inclined to draw a distinction between process and product as a way of limiting the reach of the "faulty workmanship" exclusion.

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