Specialty Risk and Insurance

Lerners has significant experience and proven expertise in handling the complexity and multi-faceted nature of Commercial General Liability (“CGL”) policies as they relate to the law.

For example, it is not uncommon for an insurer to be faced with a claim in which an insured under a CGL policy is being sued for the provision of a faulty component to a larger structure which has allegedly resulted in property damage.

In determining coverage, the insurer needs to first consider several exclusion clauses under the policy, including the “your product” and “your work” exclusions. Moreover, the policy is not intended to indemnify for pure economic losses and the insurer will, at first instance, want to consider whether “property damage” as defined under the policy has even occurred.

Motions to determine coverage are highly technical. The insured bears the onus of proving prima facie coverage. As part of this process, the insured must prove that “property damage” has occurred. If prima facie coverage is established however, the onus then shifts to the insurer to show that an exclusion clause operates. Most often, this will come down to a consideration of the “your work” and “your product” exclusion clauses.

At Lerners, we regularly assist clients with these types of complex issues of CGL policy analysis. Our lawyers are also skilled in analyzing and writing opinions on broader entitlement coverage issues. Of course, we also help you develop strategies for maintaining your position and defending against any litigation related claim.