Friday, September 30, 2005

S.C. Supreme Court holds that faulty workmanship is not an accident

The South Carolina Supreme Court issued its decision in the case of L-J, Inc. v. Bituminous Fire and Marine Insurance Co., holding that faulty workmanship is not considered an accidental event or "occurrence" under a commercial general liability policy. According to the Court:

[W]e hold that the damage in the present case did not constitute an "occurrence." If we were to hold otherwise, the CGL policy would be more like a performance bond, which guarantees the work, rather than like an insurance policy, which is intended to insure against accidents.

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