FALLNG ROCKS DO NOT GIVE RISE TO PROFESSIONAL LIABILITY EXCLUSION

On Behalf of | Jan 23, 2025 | Firm News

In State Auto Property & Casualty Insurance Co. v. Pritchard Engineering, Inc., 2023 WL 2731042 (N.D. Miss. 03/30/23), the Court considered whether a professional liability exclusion within a commercial general liability policy prevented coverage for claims based on the engineer’s general duties.

In Pritchard Engineering, the engineering firm was insured under a CGL policy that contained a professional liability exclusion.  The incident in question involved two workers who were on the construction site as independent contractors.  While working in a trench, installing sewer lines, a large rock formation fell into the trench, killing the workers.  Wrongful death suits were filed, alleging that the insured, the project engineer for the site, had allegedly been hired to maintain safety at the construction site, as well as supervising various activities at the site, including earthwork, excavation, and installation of the sewer system.  It was alleged that as project engineer, the insured was also charged with the obligation of performing regular safety inspections at the construction site.  The claimants alleged that the insured breached its duties to warn the workers of hazardous and dangerous conditions and to maintain safety over the work.

The policy’s professional liability exclusion applied to the failure to render professional services, including “supervisory, inspection, quality control, or engineering activities . . .”  The Missouri Court held that the professional liability exclusion in the engineer’s CGL policy precluded coverage of claims against the engineer alleging breach of duty specific to the installation of a sewer line in the trench, but did not preclude coverage of claims alleging a breach of general duties to warn of dangerous conditions and to maintain safety on the project site as a whole.  The professional liability exclusion was limited to claims that implicated the engineer’s specialized knowledge.

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