Q

Our insured, an auto repair shop, has an ISO garage coverage form CA 00 05 10 01. Recently a customer's car windows were damaged when an overspray of paint got on the windows of their vehicle. In attempting to remove the paint, the windows were scratched.

The company has denied the claim, citing exclusion 13, “This insurance does not apply to…'property damage' to 'work you performed' if the 'property damage' results from any part of the work itself or from the parts, materials or equipment used in connection with the work.”

North Carolina Subscriber

A

We agree with you that the loss should be covered under the garagekeepers section of the garage policy. That coverage applies to loss to a covered auto left in the insured's care while servicing that car; the loss as you described it certainly fits that description.

Now, the insurer may say that the faulty work exclusion applies but we don't agree with that approach. The faulty work exclusions apply just to the work that the insured performs; any damage that follows the work is covered. So, in your case, the faulty work, if any, would be the spray painting. Efforts to clean overspray that cause damage are not part of the work of the insured that is excluded. The insured should have coverage for this claim under his garagekeepers coverage.