This session offers senior construction contractor and developer risk managers a concise, practical overview of two significant court decisions shaping defects coverage under Construction All Risks (CAR) insurance: South Capitol Bridgebuilders v Lexington Insurance Company and the Court of Appeal ruling in Sky UK Ltd v Riverstone. The session explains how these cases clarify the operation of LEG3 and defects exclusions, redefine the boundary between insured damage and excluded defective workmanship, design, or materials, and increase the evidential burden on insureds to prove resulting damage beyond the defect itself. It will explore the implications for the CAR market, including stricter interpretation of policy wordings, heightened underwriting and claims scrutiny, and a greater risk of coverage disputes. Attendees will leave with clear guidance on how to review CAR policies, manage defect risk more effectively, and engage with brokers and insurers to minimise unintended coverage gaps and legal exposure.