CGL Insurer Seeks Coverage Ruling on Drywall Claims Against Contractor

WEST PALM BEACH, Fla. - A declaratory judgment action has been filed in Florida to determine whether General Fidelity Insurance Co. has an obligation to cover Chinese drywall claims asserted against a general contractor that has purchased policies from the insurer since 2006. General Fidelity Insurance Co. v. Foster, et al., No. 09-80743 (S.D. Fla.).

The suit was filed May 18 in the U.S. District Court for the Southern District of Florida, where General Fidelity's insured, Northstar Holdings Inc., was sued for subcontracting construction work to a company that installed allegedly defective drywall in several homes.

According to the underlying …