FCCI Insurance Company v. Crowe et al

On March 7, 2023, FCCI Insurance Company filed a declaratory judgment action in a United States District Court against Crowe and other associated parties. The insurance carrier sought a judicial determination that it owed no duty to defend or indemnify the defendants under a commercial general liability policy. The underlying dispute stemmed from a construction defect claim, where the insured faced allegations of faulty workmanship leading to property damage. FCCI contended that the claims fell outside the policy's coverage scope due to specific business risk exclusions, triggering a complex debate over the interpretation of "occurrence" and "property damage" within the insurance contract.

As of the latest available public records, the case remained in pre-trial litigation with cross-motions for summary judgment pending before the court. No final adjudication has been publicly reported.

The core dispute focused on whether the underlying construction defect allegations constituted an "occurrence" causing "property damage" as defined by the insurance policy, and whether standard business risk exclusions, such as the "your work" exclusion, barred coverage, thereby relieving FCCI of its duty to defend and indemnify.

The case highlights the ongoing tension in construction insurance law regarding the boundary between covered accidental damage and uncovered contractual business risks. It serves as a reference point for insurers and contractors, underscoring the critical importance of precise policy language in determining defense obligations during prolonged litigation.