Short answer
Which general liability policy covers a construction defect years later? Occurrence-based GL generally responds to damage that happens during the policy period, even if the claim arrives years later. A defect claim on a finished project may involve your old GL carrier, or several. Keep every past GL policy and certificate, and give your agent the project dates when you report a claim.
How do occurrence and claims-made policies differ?
An occurrence policy generally responds to damage that happens during the policy period, no matter when the claim is made. A claims-made policy responds to claims made and reported during the policy period. General liability is usually written on an occurrence basis, which is why old policies matter. [Claims-made vs occurrence]
When did the damage happen?
Courts use different tests for this question. Some look at when the damage first happened, and others look at when it was discovered. In Florida, the 11th Circuit applied an injury-in-fact test in Carithers v. Mid-Continent Casualty Co. (2015). The test depends on the state and the court, so ask your attorney which one applies to your claim.
Water damage that grows over years can touch several policy periods. Whether a policy responds depends on its wording and the facts. [Water intrusion and mold claims]
Example: a hypothetical defect claim after a carrier change
A design-build firm receives a defect claim on a project finished several years ago. Its general liability has changed carriers since then. The agent’s first question is when the work was finished, because the policy in force when the damage happened may not be the current one.
In this hypothetical, the agent notifies both the current and the prior carrier. Whether either policy responds depends on its terms, exclusions and underwriting.
What is products-completed operations coverage?
Damage that appears after the job is done usually falls under products-completed operations coverage. This coverage often has its own aggregate limit. Check your policy to see how yours is structured and what limits apply.
What is Florida’s statute of repose for construction defects?
Florida generally limits construction defect lawsuits to a set period after completion. A 2023 change shortened that period to 7 years. Read the current text of Florida Statutes section 95.11 and confirm how it applies with your attorney.
What records should you keep?
Keep these records for every project, indefinitely if you can:
- Every general liability policy
- Every certificate of insurance
- Contracts and subcontracts
- Your subcontractors’ certificates and endorsements
A shared drive folder for each year works well.
What to check
- When was the work finished, and who wrote your general liability then?
- Do you still have every past general liability policy and certificate?
- Which carriers may need notice, current and prior?
- Does your policy show a separate aggregate for completed operations?
- Do you have the subcontractor certificates for that project?
Questions to ask your attorney
- Which test for when damage happens applies in our state?
- Does the statute of repose affect this claim?
- Which carriers should receive notice, and has each acknowledged it?
This article is general education, not legal advice. Hardcover is an insurance agency, not a law firm.
Related questions
Which general liability policy covers a construction defect years later?
Usually the policy in force when the damage happened, which may not be your current one. Several may apply.
Should I keep old insurance policies?
Yes. Occurrence policies can respond years later. Keep copies indefinitely.
Does my current general liability cover old projects?
It may, if damage happens during the current policy period. Your agent should notify every carrier that may be involved.
The job was finished a while ago and we had a different insurer then. Who do we call?
Call your agent first with the project dates. Both the current and the prior carrier may need notice.