ensuing loss

When is Ensuing Loss Not Ensuing Loss?

by Jill Berkeley on September 19, 2012

In Friedberg v. Chubb & Son, Inc., No. 11-3063 (9/7/2012), the Eighth Circuit Court of Appeals severely restricted property coverage for water damage caused by defective construction by interpreting the ensuing loss exception to apply only to “distinct and separable” ensuing losses.

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Topics:

Property Losses & Business Interruption

Tags:

ensuing loss, mold, water damage, EIFS

Court Finds Insurer’s Knowledge of Potential Liability Precludes Application of Known Loss Doctrine and That “Ensuing Loss” Clause Applies

by Tonya Newman on January 23, 2012

In Nipponkoa Ins. Co., Ltd. v. NDK Crystal, Inc., 3:11-cv-50205 (N.D. Ill. Dec. 29, 2011), the court held that a first party property policy covered the insureds’ losses arising from an explosion, concluding that because the insurer had equal knowledge of the potential liability, the known loss doctrine did not apply. Further, the court held that the ensuing loss exception to several policy exclusions clearly provided that the insurer was liable for loss or damage caused by an explosion.