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LEG 3 - Has America sneezed?

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.

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