After Don's Building: Change is the One Thing We Can Be Sure Of


"The more things change, the more they remain insane."

In 2008, the Texas Supreme Court completely changed the trigger of coverage theory for occurrence based Commercial General Liability (“CGL”) policies in Texas.1 The Court held that, where damage occurs over multiple policy periods, coverage is triggered for any policy period in which actual damage transpires.

Unlike the manifestation theory, which implicates only the policy year when the damage is discovered, the “actual injury” theory triggers coverage for every policy period (and all of the policies) in which property damage occurs. The actual injury trigger increases the likelihood of cases involving the existence of multiple polices with different policy limits and multiple carriers. In turn, this will often lead to many coverage issues.

This paper will attempt to disentangle some of these interrelated issues and provide insight into the practical implications that may arise.

CLE Presentation to the State Bar of Texas, April 2, 2009.

To read the full article click on the PDF linked below.

1 Don’s Bldg. Supply, Inc. v. OneBeacon Ins. Co., 267 S.W.3d 20 (Tex. 2008).

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