Pioneer Home Improvement was hired by The Skanes to, among other tasks, install new siding on their home. Although the Skanes made two installment payments to Pioneer; they were unhappy with the speed and the quality of their work. The relationship between the Skanes and Pioneer got to a point where Pioneer stopped work on the project and the Skanes refused to make any more payments.

Pioneer filed a mechanic's lien on the Skanes home. The Skanes responded by filing a suit claiming defective work and breach of contract. Eventually Pioneer made a separate settlement with the Skanes.

Pioneer had initially sought coverage under their Commercial General Liability policy from Erie Insurance. Erie Insurance had originally provided defense for the suit under a reservation of rights, but withdrew when they determined that the loss involved defective work and was not covered by the policy.

The trial court agreed with the insurer's position and allowed their withdrawal.

Pioneer appealed the decision, arguing that they were owed coverage by Erie under the Completed Operations portion of the policy. Pioneer also contended that Erie owed them a legal defense of the Skane's claim.

The appellant court reviewed the findings of several similar cases and found that a distinction was constantly made regarding, what it called, harm risks and business risks. In essence, harm risks involved damages related to an insured's work and was accidental in nature. On the other hand, business risks involved damage caused by a party performing its work in an incompetent or unprofessional manner. In its opinion, the damage done by Pioneer was a business risk and, therefore, was not covered by the CGL issued by Erie.

Erie Insurance Property and Casualty Company, Plaintiff-Appellee, v. Pioneer Home Improvement, Incorporated, Defendant-Appellant. WVaSCtApp. No. 26212 Filed December 10, 1999. Affirmed. CCH 2000 Fire and Casualty Cases, Paragraph 7188.