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Every so often, even frequently, we get coverage questions that make us wonder what is wrong with people. Lose a dollar, sue. Get mad, sue. Sue to get even. Sue to get revenge. Sue, Sue, Sue.

Our insured bred a litter of puppies. One of the puppies has tested positive for a congenital condition. The new puppy owner has sued the insured for delivery of a defective product. Is there coverage? Why or why not? I can see the potential for the argument that the [condition of the] puppy is not ‘property damage’ caused by ‘an occurrence.’ I also can see the argument that the failure to deliver a healthy puppy is a breach of contract. What are your thoughts?

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