Indiana Changes Course on Insurance Coverage for Construction Defects

By: Sean T. Devenney

In the recent case Sheehan Construction Company et. al. v. Continental Casualty Company et. al. the Indiana Supreme Court issued a game changing insurance opinion which will likely be interpreted as providing insurance coverage for construction defects for general contractors.  For the previous twenty plus years, the Indiana Courts have moved to eliminate or minimize coverage afforded general contractors dealing with construction defects claims under standard CGL insurance policies.  This case basically reverses the trend in Indiana and opens up coverage to general contractors whose subcontractor’s work on a project is alleged to be defective.  This opinion is a must read for general contractors, insurance agents, and construction industry participants because it will serve as the cornerstone to any discussion relating to coverage for a construction defect claim against a general contractor.  For a link to the opinion of the Indiana Supreme Court see: