The Texas Supreme Court handed subcontractors, home builders, and others in the construction industry a precedent-setting victory in an Aug. 31, 2007, decision concerning the coverage provided by a common type of commercial general liability (CGL) insurance policy. The decision denies an insurer's argument that a home builder's CGL policy does not cover accidental property damage caused by a subcontractor's allegedly defective work. The American Subcontractors Association Inc. (ASA) and ASA of Texas Inc. (ASAT) joined other construction trade associations in the state in filing two "friends of the court" briefs in the case in 2005 and 2006.
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