Randy Kaady v. Mid-Continent Casualty Co.

OPINION

KOZINSKI, Circuit Judge:

We explore the meaning of a “known-loss” provision in a commercial general liability insurance contract.

I. Facts

Kaady, who is a mason by profession, was awarded a subcontract for the installation of manufactured stone 1 at the Collins Lake Resort, a multi-unit residential project. Kaady affixed manufactured stone to the wall sheathing 2 of certain buildings, wrapped deck posts with manufactured stone and installed masonry caps on the top of the stone that was wrapped around the deck posts. Construction was completed in May 2006.

In September 2006, Kaady was…