Sweeping Changes to “Bad Faith” in Florida
By J. Blake Hunter | Blog Posts
March 28, 2023
Tampa Partner Kimberly Ramey and Associate Kyle Goss recently wrote an article that was published in the DRI Brief Case Volume 2 Issue 3. An excerpt from the article can be read below:
The “continuous or progressive injury or damage” exclusion works to eliminate coverage for property damage and/or bodily injury that begins prior to the inception of the policy in question, but continues into the policy period. It operates in a manner similar to the standard “anti-Montrose” or “known loss” provisions with one notable exception — the policyholder’s knowledge of the damage or injury is not required. By contrast, this exclusion is intended to bar coverage for bodily injury or property damage if the injury or damage began to occur prior to the inception of the policy, even if the policyholder had no knowledge of it.
A typical example of the “continuous or progressive injury or damage” exclusion reads as follows:
This insurance does not apply to any “bodily injury” or “property damage”:
1. which first existed, or is alleged to have first existed, prior to the inception of this policy. “Property damage” from “your work,” or the work of any additional insured, performed prior to policy inception will be deemed to have first existed prior to the policy inception, unless such “property damage” is sudden and accidental and takes place within the policy period [sic]; or
2. which was, or is alleged to have been, in the process of taking place prior to the inception date of this policy, even if such “bodily injury” or “property damage” continued during this policy period; or
3. which is, or is alleged to be of the same general nature or type as a condition, circumstance or construction defect which existed, or resulted in “bodily injury” or “property damage,” prior to the inception date of this policy.
The full article can be found at this link in Section 5 of the DRI website.