When is a General Contractor’s Insurance Claim Against Subcontractor’s Insurance Ripe?

In Core Construction Services Southeast, Inc. v. Crum & Forster Specialty Insurance Company, Core sued Crum for breaches of commercial general liability (CGL) insurance policies and seeking a declaration as to whether the insurers must defend and indemnify Core under the terms of the contracts. 2015 WL 3929696 (M.D. Fla. June 25, 2015).  Core was the general contractor of a condominium.  After the condominium was built, construction defect litigation was commenced.  Core required its subcontractors to name it as an additional insured under their CGL policies.

Core filed the above-referenced lawsuit seeking coverage on the subcontractor insurance policies.  The Insurer argues that the matter is not ripe for adjudication because the construction defect litigation has not concluded.  The United States District Court, Middle District of Florida held that the case was ripe.  An insurer’s duty to defend arises out of allegations in the underlying complaint and the terms of the insurance policy.  While the duty to indemnify is not ripe until the underlying litigation has concluded, the duty to defend is ripe.