Our insured, vice-president of sales for a large company, has an HO 00 03. We also insure the company under a standard ISO CGL. Recently, the vice-president attended an out-of-town business seminar. He attended a morning session, and returned to his hotel room, preparing to check out. In the course of doing so, he raised his garment bag and inadvertently hit a sprinkler head on the hotel room wall. A substantial amount of water was released which damaged the room and other areas of the hotel.
We submitted the claim to both the homeowners carrier and the CGL carrier, since we were unsure as to which form would respond first. Now, however, we find both companies are denying the claim. The homeowners carrier cites the “business pursuits” exclusion, and the CGL carrier cites the “care, custody, or control” exclusion. Shouldn't there be coverage for this claim?
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