Arkansas “occurrence”

In Essex Ins. Co. v. Holder, No. 07-803 (Ark. March 6, 2008), the insured general contractor was sued by a homebuyer, prior to completion of the home, alleging breach of contract, breach of warranties, and negligence, seeking damages in part for defective construction.   Following the insured’s demand for a defense, the insurer filed a declaratory judgment action.  In answering a certified question from the federal district court, the Arkansas Supreme Court held “that defective workmanship standing alone — resulting in damages only to the work product itself — is not an ‘occurrence’ under a CGL policy.”