This post from today's BusinessInsurance.com addresses legislation introduced in South Carolina seeking to extend coverage for construction defects under CGL policies.  We posted on a similar effort underway in Hawaii to expand coverage for construction defects under SB1194.

   Similar to Hawaii's effort through SB1194 to correct the Intermediate Court of Appeal's decision in Group Builders, Inc. v. Admiral Ins. Co., 123 Haw. 142, 231 P.3d 67 (Haw. Ct. App. 2010), the South Carolina legislation seeks to overturn a decision by its Supreme Court, holding that faulty workmanship by a contractor or subcontractor cannot be considered an occurrence under a CGL policy.  The South Carolina legislation is H.B. 3449 and S.B. 431.  BusinessInsurance.com notes that insurance groups oppose the legislation.

   The post also refers to the current situation in Hawaii, post-Group Builders:

Even though construction defects are not considered an occurrence in some states, some insurers have chosen to treat them as such. A controversial ruling in Hawaii last year that damage resulting from defects does not constitute an occurrence triggering coverage under a CGL policy prompted some underwriters to alter policy language to make it clear that they intended to pay such losses.