SUPREME COURT DENIES COVERAGE

The South Carolina Supreme Court has issued its decision in the case of L-J, Inc. v. Bitum-inous Fire and Marine Insurance Co.

The court decided that faulty workmanship can not be considered an accidental event or “occurrence” under the provisions contained in a commercial general liability policy.
“PCI agrees with the South Carolina Supreme Court’s decision that faulty workmanship is not caused by accident” Robert J. Hurns, counsel for the Property Casualty Insurers Association of America, which filed an amicus brief in the case, commented after the verdict was announced.

Bituminous Fire and Marine Insurance Co. brought the underlying declaratory judgment action seeking a determination as to whether a CGL policy issued to L-J Inc. covered damage caused by the faulty workmanship of L-J Inc. and its subcontractors on a road construction project.