SC High Court Blocks Coverage In Construction Defect Case

Law360, New York (July 19, 2013, 6:09 PM ET) -- The South Carolina Supreme Court held Wednesday that two exclusions freed Auto Owners Insurance Co. from covering a construction company's breach of contract lawsuit over defective work by a subcontractor.

The high court ruled that an exclusion for damage to property on which contractors or subcontractors are "performing operations" and an exclusion  for the cost of repairing a policyholder's work because of a suspected defect both applied to bar coverage for Bennett & Bennett Construction Inc.

The decision overturns B&B's victory in the litigation, which sought...
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