A five-judge panel dismissed $3 million in property coverage claims. Caused by nearby construction, the damage to the policyholder’s building falls under an earth movement exclusion which disqualifies it from coverage.
Partner Kevin Buckley, representing Great American, said,
“[t]he panel’s decision helps clarify when the standard earth movement exclusion applies. I believe this decision makes clear that, at least in New York, man-made excavation is a peril that falls within the standard earth movement exclusion in a commercial first-party property insurance policy.”
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