Law Commons^™

New York's Approach To Faulty Work And The Term “Occurrence” In Commercial General Liability Insurance Policies, Richard M. Hauser Jr.

St. John's Law Review

(Excerpt)

Imagine the following scenario: A large power plant hires a global construction firm to produce eight reactors designed to remove toxic pollutants from exhaust that the plant releases into the atmosphere. The reactors are large and extremely complicated pieces of machinery, so the construction company subcontracts the manufacturing and installation of their internal components to multiple different subcontractors. Shortly after the power plant puts three of the reactors into operation, plant supervisors discover cracking and fracturing in the reactors caused by a defect in an internal gas riser manufactured by a subcontractor. The damage to those reactors is so …