SB 17-045

Senate Bill 17-045 in Colorado is a law that requires insurance companies to share the costs of defending construction defect claims when multiple insurers are involved. This means if a builder or contractor faces legal issues due to construction defects and has more than one insurer, those insurers must split the defense costs fairly. The bill also allows insurers to seek contributions from parties who didn't buy necessary insurance coverage during relevant periods. Since this bill has been signed into law, it is now enforceable and will affect how construction defect cases are handled in Colorado.

Official Summary

In a construction defect action in which more than one insurer has a duty to defend a party, the bill requires the court to apportion the costs of defense, including reasonable attorney fees, among all insurers with a duty to defend. An initial order apportioning costs must be made within 90 days after an insurer files its claim for contribution, and the court must make a final apportionment of costs after entry of a final judgment resolving all of the underlying claims against the insured. An insurer seeking contribution may also make a claim against an insured or additional insured who chose not to procure liability insurance for a period of time relevant to the underlying action. A claim for contribution may be assigned and does not affect any insurer's duty to defend. (Note: This summary applies to this bill as introduced.)

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