Law on coverage for faulty workmanship upheld by S.C. high court

12/6/2012 | Insurance Journal

The South Carolina Supreme Court has upheld a law that includes coverage of damages from faulty workmanship in a contractor's general-liability policy, but the court said the measure does not apply to claims submitted before the law took effect last year. "Insurance coverage for construction liability lacks clarity, particularly with respect to whether construction defects constitute 'occurrences' under construction general insurance policies. The General Assembly properly exercised its authority in an attempt to definitively resolve or at least minimize this frequently-litigated issue," according to the majority opinion, written by the court's chief justice.

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