Supreme Court to Consider When an “Occurrence” Occurs Under CGL Policy

In the context of commercial general liability coverage (GCL), Michigan courts have repeatedly found that “an ‘occurrence’ cannot include damages for insured’s own faulty workmanship.” Skanska USA Building Inc v Amerisure Ins Co, unpublished opinion per curiam of the Court of Appeals, issued March 19, 2019 (Docket No. 340871), p 10.

This has been considered the rule since Hawkeye-Security Ins Co v Vector Construction Co, 185 Mich App 369 (1990), despite subsequent changes to the standard CGL form’s definition of “occurrence.”

However, an October 18, 2019, Order from the Michigan Supreme Court – granting the insured’s Application for Leave to Appeal in Skanska – potentially calls this line of cases into question. Skanska USA Building Inc v Amerisure Ins Co, ___ Mich ___ (2019) (Docket No. 159510).

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