Illinois Supreme Court Changes Law for Construction Defect Coverage

The Illinois Supreme Court has opened the door for commercial general liability (CGL) insurance policies to cover construction defect cases. Overturning years of lower court cases, the court held that CGL policies can provide coverage for damage caused by inadvertent construction defects. Faulty workmanship qualifies as an accidental “occurrence” and that actual damage, even within the insured’s scope of work, is insurable “property damage.”