Q

We insure a business under a businessowners policy form BP 00 02 12 99. The tenants who occupy the area next to our client were having remodeling work done, and jack hammering next door caused one of the walls in our client's office to crack. The insurer for our client wants to deny the claim because of exclusion 3.c., negligent work, on the businessowners policy form. The adjuster says that faulty design and construction is the cause of loss, and therefore the claim is excluded. I disagree and believe the claim should be covered.

Pennsylvania Subscriber

A

You are correct. Given the situation you describe, the cause of loss is the vibration caused by nearby jack hammering, not faulty design and construction. There is no exclusion on form BP 00 02 for this cause of loss. Mere cracking that was caused by settling of the building, however, would be excluded. Since you can identify a cause for the damage which is not excluded, coverage is triggered.