Source Berkley Construction Professional

A general contractor directed its flooring subcontractor to clean the project’s tile floor as it had a cloudy film despite several prior cleaning attempts. The subcontractor utilized a caustic substance that caused corrosion to metal furniture and HVAC system components. The owner demanded these items be replaced. Unfortunately, the general  contractor’s contract with the subcontractor only required general liability insurance which excluded the claim based upon the pollution exclusion, leaving the general contractor to pay for the damages. The total amount paid to resolve the matter was $160,000.