GKLL Faulty Work Coverage

March 23, 2015

Our insured carries a garagekeepers policy with the following coverages: collision (legal liability) and comprehensive (legal liability). While installing a window tint, the insured by accidentally cracked the windshield.

The adjuster believes the following exclusion applies: B. Exclusions: 1. This insurance does not apply to any of the following:
d. Faulty Work. Faulty work you performed. The insured believes the exclusion does not apply to this loss. The insured believes that this loss is covered because his policy carries comprehensive coverage and because the exclusion only applies to work that has already been performed.

What is your opinion?

Florida Subscriber

We agree with the insured. The exclusion is clearly worded in the past tense, that is, “work you PERFORMED.” If the exclusion were to apply to present operations by the insured, the exclusion would have been worded differently. Besides, coverage for damage done to the customer's auto while being worked on by the insured is the purpose of garagekeepers coverage, as the insuring agreement makes clear.