Insurer Must Defend Roofing Contractor in $5 Million Lawsuit, 5th Cir. Panel Rules

NEW ORLEANS — A 5th Circuit U.S. Court of Appeals panel has ruled that Employers Mutual Casualty Co. must defend a contractor in a $5 million lawsuit accusing it of breaching its guarantee by refusing to replace a leaking roof, ruling that the “Your Product/Your Work Exclusion does not apply to some of the underlying allegations.

In a Jan. 11 opinion, the appellate panel explained that the underlying complaint contains allegations of damage to property other than Siplast Inc.’s roof membrane.

The Archdiocese of New York bought a roof membrane system from Siplast Inc. in 2012 for a Bronx, N.Y. …