Eleventh Circuit Upholds No Coverage for Faulty Construction Due to Policy Endorsement Requirements

The Eleventh Circuit recently affirmed a ruling denying coverage for a homeowner’s claim, reinforcing the importance of compliance with policy endorsement provisions. The case involved a “Contractors Special Condition Endorsement,” which required the insured general contractor to obtain written indemnity agreements and certificates of insurance from its subcontractors, listing the general contractor as an additional named insured. The insured failed to meet these requirements, leading the District Court to grant summary judgment in favor of the insurer.

On appeal, Swift Currie Partner Lane Finch successfully secured the ruling, with the Eleventh Circuit upholding the decision and finding that the insured’s failure to comply with the endorsement’s conditions precluded coverage for negligent construction by subcontractors. This ruling underscores the necessity for contractors to secure proper documentation from subcontractors to avoid gaps in insurance protection.