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Can faulty workmanship be considered an occurrence covered under a commercial general liability policy? According to a ruling by the Supreme Court in South Carolina in regard to the case L-J, Inc. v. Bituminous Fire and Marine Insurance, the answer is no.

Bituminous Fire and Marine Insurance sought judgment as to whether a CGL policy issued to L-J covered damage caused by faulty workmanship on a road construction project. Specifically, the case alleged that an inadequately compacted road base resulted in the deterioration of pavement in a subdivision several years after completion.

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