We have recently seen a further eyebrow raising decision on LEG 3 (a defects exclusion/write back) under a
Construction All Risks ("CAR") policy
coming out of the US, the second in only
three months. These will attract some
attention for insurance market
participants in other jurisdictions
because of the dearth of reported LEG
decisions, partly because such issues
usually arise in the context of arbitrations
which do not get reported. When
America sneezes, sometimes the world
can catch a cold, but insurers in this area
may be hoping that is not the case here.
