The South Carolina Supreme Court recently heard oral arguments in the rehearing of its January 7, 2011 decision in Crossman Communities of North Carolina, Inc. v. Harleysville Mutual Insurance Co. The Crossman Communities decision significantly altered South Carolina law on Commercial General Liability (CGL) policies. In Crossman, the Court held that when property damage is a natural consequence of faulty work, there is no “occurrence” – and thus an insurance company has no duty to defend its insured in a lawsuit and no duty to pay if its insured loses that suit. The implications for risk allocation in the construction industry are enormous.