The Complex Insurance Coverage Reporter

ENSUING LOSS CLAUSE

Bob Robison Com. Flooring Inc. v. RLI Ins. Co., 2025 U.S. App. LEXIS 6369 (8th Cir., Mar. 19, 2025)

Eighth Circuit, predicting Arkansas law, concludes that an ensuing loss exception to a “Defects, Errors, Or Omissions” exclusion* in a builder’s risk policy installation floater did not “restore” coverage for costs incurred by a contractor-insured to remove and replace flooring it installed in a gym that was damaged by a subcontractor’s faulty painting work. It was undisputed that faulty workmanship was the sole and exclusive cause of loss which ... Continue Reading