TX STATETexas Court of Appeals, 8th District (El Paso)
2023

United Fire Lloyds v. JD Kunz Concrete Contractor, Inc., and ExploreUSA RV, Ltd.

Texas Court of Appeals, 8th District (El Paso) • Decided 2023Enforced

HOLDING

A concrete contractor's commercial general liability (CGL) insurance policy was required to cover construction defects from poor workmanship on a 12-acre concrete project. The insurance company tried to deny coverage using contractual liability, your-work, and your-product exclusions, but the Texas Court of Appeals ruled those exclusions did not apply. The court enforced the policy and required the insurer to indemnify the contractor. This matters because it protects subcontractors: your CGL policy should cover defect claims unless the exclusion language is crystal clear.

KEY FINDINGS

Broad Indemnification

CGL policies cover construction defects from poor workmanship by default—exclusions must be explicit and unambiguous to deny coverage

Insurance Requirements

Standard exclusions like 'your-work' and 'your-product' may not eliminate coverage for defects; courts interpret them narrowly in your favor

FULL COURT OPINION