Ledcor claimed the damages against its insurance policy, but was declined on the basis of a clause excluding coverage for «the cost of making good faulty workmanship, construction materials or design...» Alberta's Court of Queen's Bench ruled that reasonable expectations of the parties weighed in favour of the applicants» interpretation of the insurance contract, but was overruled on appeal. (canadianlawyermag.com)
The exclusion clause here is a standard form one denying coverage for the «cost of making good faulty workmanship» but, as an exception to that exclusion, nonetheless covers «physical damage» that «results» from the faulty workmanship. (slaw.ca)
The insurers denied coverage on the basis of an exclusion contained in the policy for the «cost of making good faulty workmanship.» (canadianlawyermag.com)