Here are a few universal truths. If politicians can raise taxes, they will.  If lawyers can bill, they will. And if judges can find a way to help clear their docket, they will.  That last truth can create a serious problem for the unwary dealing with insurance claims.

Many business property policies and homeowners’ policies

In a recent decision in the federal district court here in New Jersey, Judge Irenas wrote:  “Plaintiff Marjorie Brooks alleges that her insurance company paid her too much money after her home was damaged by Hurricane Sandy. The court thus takes judicial notice of the following facts: pigs can fly and hell has frozen over.” 

A lot has been written lately – both by judges and observers – about the so-called “business risk” exclusions and their applicability to construction defect claims.  (We’ve previously discussed them here, for example.)  Some judges have ruled that faulty workmanship can never constitute a covered “occurrence” under a general liability policy.  Lately, though, more