Occurrence Definition Trends Analyzed

August 27, 2014 — Beverley BevenFlorez-CDJ STAFF
In The Legal Intelligencer, Gordon S. Woodward, partner at Schnader Harrison Segal & Lewis, analyzed the changing definition of occurrence in the insurance industry, and more specifically in Pennsylvania. Woodward begins by going over “the traditional view of occurrence as it relates to coverage for faulty products or defective work,” in which “the existence of a defect in a product or an event in which a defective product injures only itself does not constitute an occurrence.” However, he stated that “there is a growing trend in favor of finding that an occurrence can include the circumstance where defective work results in damage only to the work or product itself (so long as the damage was neither intended nor expected by the insured).” Woodward also explained Pennsylvania developments and legislative changes (such as a South Carolina statute). These changes need to be monitored, Woodward stated, “as they have the potential to dramatically alter the coverage landscape from one jurisdiction to the next.” Read the full story...