Posted on 04.24.25
Insurer must defend contractor in mold dispute, court says
Source: https://www.insurancebusinessmag.com/, April 24, 2025
By: Matthew Sellers
A federal appeals court has ruled that Phoenix Insurance Company wrongfully denied its duty to defend Wehr Constructors, Inc., in a dispute stemming from mold and construction defects at a Kentucky hospital.
The Sixth Circuit Court of Appeals issued its decision on April 18, reversing a lower court’s finding that the commercial general liability (CGL) policy held by Wehr did not apply. The ruling breathes new life into Wehr’s claim for defense costs and highlights the continuing uncertainty in Kentucky law over insurance coverage for construction-related property damage. Read more.
