S.C. High Court Revisits Faulty Workmanship 'Occurrence' in CGL Policy

COLUMBIA, S.C. - The South Carolina Supreme Court has reversed a lower court decision finding insurance coverage for construction defect claims, ruling that there was no "occurrence" where the natural consequence of faulty workmanship was water intrusion and damage. Crossman Communities of North Carolina Inc., et al. v. Harleysville Mutual Insurance Co., et al., No. 26909 (S.C. Sup. Ct.).

In resolving that question in favor of insurers, however, the high court also adopted in its Jan. 7 opinion a narrow view of "work product" exclusions, ruling that the term does not encompass non-defective components.

Respondents Crossman Communities of North …