Your Product Exclusion and Defective Floor Panels

This claim deals with wood floor panels that our insured sold to the claimant. The claimant bought the panels and then hired an independent contractor to install them. The claimant is now claiming that the wood floor is defective. Would the your product exclusion in the CGL form apply since the panels are the product of the named insured and the claim is that they are defective? We are not sure because the definition of your product does not include real property.

Connecticut Subscriber

The definition of your product does apply to other than real property. However, if the floor panels are defective, they were most probably defective before they were installed; that is, being installed would not have made them all of a sudden become defective. So, since the panels were defective before installation, and thus, not real property at that time, that would make them fit the definition of your product, and the damage to your product exclusion would apply.