Travelers Insurance sued to avoid covering property damage claims against Eljer Manufacturing for defective plumbing systems. The Illinois Supreme Court ruled that insurance coverage is triggered when actual property damage occurs—like a leak causing home value to drop—not just when the defective product is installed. This matters because it means your insurance may cover damage claims even if the defect existed during installation, as long as the actual damage happened during the policy period.
Insurance coverage for defective products is triggered by actual damage occurring, not by installation or discovery of the defect