In the case at hand, a contractor that was hired to build new piers for a house accidentally allowed the house to fall off the piers resulting in $26,000 in damages.
The Connecticut Superior Court ruled that the business risk exclusion is applicable to deny coverage. This is Exclusion L under the ISO General Liability form, which reads “Property damage to your work arising out of it or any part of it and included in the products-completed operations hazard.”
The purpose of this exclusion is to give the contractors incentive to be careful while performing operations. In this case, the court reasoned that the entire home was being directly worked upon.