Texas High Court Says 'Occurrence' Includes Undiscovered Damage

AUSTIN, Texas - The Texas Supreme Court has ruled in response to a certified question from the 5th Circuit that an occurrence-based commercial general liability policy covers damage that occurred during the policy period but wasn't discovered until later. Don's Building Supply, Inc. v. OneBeacon Insurance Co., No. 07-0639 (Texas Sup. Ct.).

Ruling on an issue of first impression, the high court said in its Aug. 29 opinion in favor of coverage that "the key date is when an injury happens, not when someone happens upon it."

At issue was an occurrence-based CGL policy issued by Potomac Insurance Company of …