American Family Mutual Insurance Company, Plaintiff-Appellant-Cross-Respondent v. American Girl, Inc., F/K/A…

Summary

The court held that the warehouse's sinking, buckling, cracking, and eventual demolition constituted property damage caused by an occurrence under the primary commercial general liability policies, even though the owner's claim against the contractor was contractual. It held that the economic loss doctrine and expected-or-intended exclusion did not bar coverage, while the contractual-liability exclusion did not apply because the contractor had not assumed a third party's liability. Coverage under the primary policies was restored by the subcontractor exception to the business-risk exclusion, but excess coverage was barred by a professional-services exclusion and later-issued policies were barred by the known-loss doctrine.