1st Circuit Says Business Risk Exclusions Bar Defense For School Subcontractor

BOSTON - Business risk exclusions in two commercial general liability policies bar defense or indemnification for a subcontractor defendant in a construction defect lawsuit, the 1st Circuit Court of Appeals affirmed on Aug. 30. B&T Masonry Construction Co. v. Public Service Mutual Insurance Co., No. 03-2473 (1st Cir.).

B&T Masonry Construction is a third-party defendant in a lawsuit brought by the City of Everett, Mass., against Barletta Engineering Corp., the general contractor on a school construction project.

Everett seeks damages for what it alleges is faulty workmanship that allowed water to leak into the school and mold to …