Carolinas AGC Succeeds in Restoring Coverage for South Carolina Contractors

COLUMBIA, S.C., May 19, 2011 /PRNewswire-USNewswire/ -- Carolinas AGC and its members' efforts resulted in the restoration of the Commercial General Liability (CGL) coverage for contractors in South Carolina on May 17, 2011.  Governor Nikki Haley signed into law S. 431, legislation to address the S.C. Supreme Court ruling on Crossmann Communities vs. Harleysville Mutual (Crossmann).

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On Jan 7, 2011, the SC Supreme Court issued a unanimous ruling in the Crossmann case that stripped contractors, homeowners, and developers of CGL coverage that protected them against claims and lawsuits arising from allegations of defective construction. Contractors had for years relied on this long-standing rule of risk insurance coverage. Carolinas AGC filed S. 431 in mid January and championed the legislation through the Senate, the House, and to the Governor's desk.

"The passage of this legislation was critical in maintaining the livelihood of our members; failing to pass it was not an option," said Leslie Hope, Director, SC Government Relations & Divisions for Carolinas AGC. "We were up against a powerful insurance lobby, but with the help of our members and support from both the legislature and Governor Nikki Haley, the ruling was successful."

Carolinas AGC members overwhelmingly answered calls to action over the last four months, greatly assisting in the reversal of the January ruling. Member Allen Amsler, president and CEO of McCrory Construction commented, "We have seen a lot of legislation with substantial impact to our business over the years. However, I would place this in the same level of importance with the original tort reform legislation. The effects of the Supreme Court's ruling could have been catastrophic to our industry in South Carolina had it not been for this bill. Thanks to all those in the House, Senate and the Governor's office who assisted us."

Carolinas AGC builds its 2,700 members' businesses through workforce development, business development, profit management, and workers' compensation insurance. Visit Carolinas AGC at www.cagc.org.

For additional information: Lori Tharp, Director, Communications & Specialty/Supplier Networks, 704/372-1450 ext. 5227, [email protected]

SOURCE Carolinas Associated General Contractors