We have the BP 00 06 01 97 Form. Our insured was a plumbing sub-contractor hired to install plumbing pipes in a new building. The insured drilled holes for the piping through the wood studs which were part of the framework of the condominium units. The holes were found to be too big which compromised the framework. The general contractor had to replace the studs. Is this an occurrence or just a faulty workmanship issue? Do exclusions K 5, 6, and N apply?

Virginia Subscriber

This is an occurrence since the insured did not drill the holes too big on purpose; he was negligent in his work. Exclusion k5 is going to apply since the property damage was to real property on which the insured was working and the property damage arose out of the insured's operations.