AUSTIN, Texas (AP The Texas Supreme Court has issued a ruling that should give consumers more confidence in the liability insurance coverage carried by their contractors.
Justice Phil Johnson released a decision Friday denying an insurance company's attempt to avoid paying a claim based on language found in most Commercial General Liability insurance policies.
Insurance law expert Randy Maniloff said the Court's decision was one of the most anticipated in the country and will have national repercussions.
The insurer was trying to avoid paying a claim because the contractor had entered into a contract with a client and hired a subcontractor.
The insurer said their policy excluded potential liabilities assumed by signing a contract. But Johnson wrote that since the liability would have been covered absent a contract, it could not be excluded.
To comment, the following rules must be followed:
Comments may be monitored for inappropriate content, but the station is under no legal obligation to do so.
If you believe a comment violates the above rules, please use the Flagging Tool to alert a Moderator.
Flagging does not guarantee removal.
Multiple violations may result in account suspension.
Decisions to suspend or unsuspend accounts are made by Station Moderators.
Questions may be sent to email@example.com. Please provide detailed information.
Viewers with disabilities can get assistance accessing this station's FCC Public Inspection File by contacting the station with the information listed below. Questions or concerns relating to the accessibility of the FCC's online public file system should be directed to the FCC at 888-225-5322, 888-835-5322 (TTY), or firstname.lastname@example.org.