Maryland Appellate Court Rules That A Construction Company Can Be Entitled To Coverage Under Its Subcontractor’s Policy

The Maryland Court of Special Appeals has held that a construction company is entitled to coverage under its subcontractor’s insurance policy as to claims that it was negligent in its supervision of the subcontractor and the work site.  In James G. Davis Construction Corp. v. Erie Insurance Exchange, No. 802, Sept. Term 2014, a construction company and its scaffolding subcontractor were both sued in a personal injury action following the collapse of scaffolding at a residential construction site.  In an opinion dated October 28, 2015,  the Court of Special Appeals reversed a lower court declaratory judgment ruling, and held that the subcontractor’s liability policy provided coverage for the construction company in response to the plaintiff’s claims that the construction company failed to exercise reasonable care in its control of the construction site, the construction of the scaffolding, and its general supervision of the project.