This handbook was prepared in 2005 by the Insurance Services Group of Hinshaw & Culbertson LLP.

This handbook briefly addresses some of the issues of insurance coverage law that often arise in construction defect litigation. It does not pretend to be a comprehensive summary of all of the significant issues, and it does not offer legal advice. Rather, this handbook attempts to summarize some of the most essential legal principles that affect insurance coverage for property damage claims in construction defect cases, as interpreted under the laws of California and Nevada.

File reviews and investigations begin with a review of the complaint or cross-complaint against the insured. In any insurance coverage analysis pertaining to any claim that involves contract rights, it is always important to read the contract first.

It is important in any coverage analysis to review the contracts that the insured has negotiated with others who are or may be affected by the litigation (e.g., the owner/developer, the general contractor, the subcontractors, etc.), with review of the insurance contract or contracts under which the insured has tendered.

For further information, please contact a member of Hinshaw’s Insurance Services Group or your regular Hinshaw attorney.

This booklet has been prepared by Hinshaw & Culbertson LLP to provide information on recent legal developments of interest to our readers. It is not intended to provide legal advice for a specific situation or to create an attorney-client relationship.