Issue #3022
Concurrent Causation

Concurrent Causation: History of the Concurrent Causation Theory

The concept of concurrent causation exclusions in property insurance policies began after a series of California court rulings found that even though an event, such as earthquake, was clearly excluded from coverage, if another event, i.e. faulty design or maintenance, not excluded, could be found, coverage could be applied.

In order to restrict coverage to the intended perils, insurers included concurrent causation exclusions in their policies. While several courts have rescinded the concurrent causation doctrine, insurers have not, leaving adjustment of certain losses up to the interpretation of those involved.

Summary of the Concurrent Causation Exclusions

  • Loss caused by weather conditions that contribute to an otherwise excluded loss.
  • Loss caused by acts or decisions of any person, group or government body.
  • Loss caused by faulty, inadequate or defective activities such as planning, design, maintenance, or faulty materials.