Ga. Insurer Told It Can Still Contest Coverage for Mold Settlement

ATLANTA - Georgia's Supreme Court affirmed on Oct. 25 that an insurer couldn't refuse to provide a defense to mold claims and then disclaim coverage on the basis of an unapproved settlement. But the court emphasized that the insurer could still contest coverage of the underlying claim based on policy language. Southern Guaranty Insurance Co. v. Dowse, No. S04G0282 (Ga. Sup.).

Robert and Ursula Dowse sued Ulysses Cutter Sr. Plaster & All Texture Stucco Company Inc., alleging defective construction of siding on the Dowses' home that resulted in water intrusion and mold damage.

Cutter sought a defense from its …