CGL Mitigation Expenses May Be Covered

CGL Mitigation Expenses May Be Covered:  Coverage may be available for the costs of removing two interstate signs because an identical third sign fell.  (SC St.)

The South Carolina Supreme Court held that expenses related to the removal of two interstate signs may be covered after an identical third sign fell, causing damage.  The court found that the state-ordered removal of the signs to mitigate further risk would not have occurred “but for” the original failure, thus it was part of the original “occurrence.”  The court then ordered a retrial of the coverage action as to whether there was “property damage.”  Auto-Owners v. Rhodes, Case No. 27316, 2013 WL 5348381, Sup.Ct. S.C.

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