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In
Berkley Specialty Ins. Co. v. Masterforce Constr. Corp., No. 4:19-CV-01162, 2021 U.S. Dist. LEXIS 14006 (M.D. Pa. Jan. 26, 2021) (Brann, J.), the Court recently concluded that, under Pennsylvania law, all reasonably foreseeable damages to third-party property caused by faulty workmanship do not constitute an “accident” sufficient to trigger coverage under a commercial general liability (“CGL”) insurance “occurrence” policy. The Court also emphasized that there could be no bad faith finding where the insurer has a “reasonable basis for denying benefits” under the policy or where coverage is “debatable.”
The underlying state court action arose after the homeowners contracted with a construction company to install a new standing seam metal roof. Although the company purported to be the contractor that would install the roof, it hired a subcontractor to install the roof and instructed him to conceal his identity as a subcontractor and represent himself as an emp