The complaint filed against the general contractor alleged that it failed to properly supervise and coordinate the construction of the subcontractors and suppliers for the project. Because the general liability policy issued by State Farm included an exclusion for “bodily injury, property damage or personal injury due to rendering or failure to render any professional services or treatments…[including] supervisory or inspection services…”, State Farm asked the court to rule that there was no “duty to indemnify” its insured.
The court held that a professional services exclusion did not apply to the term “supervisory” in the general contractor sense. Instead, the court found that “supervisory services” is something over and above overseeing the work of subcontractors, stating that:
Because of the failure to specifically reference work performed by general contractors, the court found that State Farm’s argument could not withstand judicial scrutiny.