On December 5, a federal district court in Florida issued a decision in a construction damages case which serves as a reminder for all construction industry companies to carefully read their insurance policies.  The defendant in the case was a supply company which supplied drywall imported from China to a homebuilder.  The homebuilder constructed homes using the drywall which allegedly caused damage to real and personal property and caused physical injuries to certain individuals.  The building supplier filed a claim with Granite State Insurance Company and New Hampshire Insurance Company which both filed a declaratory judgment action that they had no duty to indemnify because their policies excluded coverage for damage caused by “pollutants” which term was defined as “any solid, liquid, gaseous or thermal irritant or contamination.”  The federal district court concluded that the exclusion did apply and that both the sections on the pollution exclusion and the definition were “clear and unambiguous.”  As this decision notes, a construction contractor may purchase insurance coverage, but that coverage may not cover every loss or damage.  Read your policy carefully.                   By Bill Harding, Chapter Attorney