This case addresses the interpretation of "Builder's Risk" insurance policies versus Commercial General Liability (CGL) policies in the context of construction negligence.
A builder's negligent roof repair caused water damage to a school gymnasium floor and project delays.
The court examined whether the Builder's Risk policy, intended to cover "property in course of construction," extended to the entire project site or only the specific area under renovation.
Resolving conflicting jurisprudence, the court adopted the reasoning that Builder's Risk insurance covers only the property actively under construction, not the entire structure.
Consequently, the Builder's Risk insurer (Northbridge) was found not liable for the gym floor damage, while the CGL insurer (Intact) was found liable.
