Thomas C. Salane, South Carolina counsel for the American Insurance Association (AIA) said the ruling was correct because the policies in question define "accident" as an occurrence and should not respond to shoddy workmanship unless it results in an accident.

He said there has been a lot of confusion over how to apply occurrence CGL policies to contractors. Contractors, he explained, maintain that shoddy work is accident because they don't attempt to do shoddy work, especially if it is done by their subcontractors.

Ms. Isler said she believes the legislature reversing the court's decision "sets a bad precedent for the business community in South Carolina," because it could be interpreted as not having a stable judicial environment. Contracts, and courts' opinions on them, could be construed as worthless if the legislature attempts a "one size fits all" to all contracts, Ms. Isler said.

In a statement, Mr. Salane said, "AIA opposes this legislation because it aims to provide coverage that these policies simply aren't meant to cover. The majority of state jurisdictions are in alignment with the South Carolina Crossman decision and this legislation will put our state's contractors at a disadvantage."

Speaking to unintended consequences the bill may have, Mr. Salane said some insurers may choose not to write contractors on a CGL basis, or could write them at a higher premium or become very selective in who they write. This would be due to the significantly greater risks in policies, he said. 

He also noted that the bill does not clearly define who is considered a "construction professional.'

The bill is sponsored by Senate President Pro Tempore Glenn F. McConnell, R-Charlston.