Tenn. High Court Rules Against Travelers on 'Your Work' Exclusion

NASHVILLE, Tenn. - The Tennessee Supreme Court held on March 7 that a subcontractor exception to a faulty work exclusion in a commercial liability policy requires Travelers Indemnity Co. to defend a building contractor sued over mold and water damage to a hotel. The Travelers Indemnity Company of America, et al. v. Moore & Associates Inc., No. M2004-01233-SC-R11-CV (Tenn. Sup. Ct.).

In affirming the findings of two lower courts, the Supreme Court also held that the damage blamed on faulty workmanship by subcontractors was unforeseeable and therefore constituted covered property damage under the CGL policy.

Travelers issued three one-year comprehensive …