The Insured was hired by a general contractor to install panels in a gymnasium. The GC is alleging the panels were installed improperly, resulting in peeling and buckling, and the need for them to be replaced. A claim was submitted under the Insured General Liability policy and coverage has been denied as per attached. The Insured's work only included the installation of the panels. Would you please provide a coverage opinion as to if there would be any coverage for resulting damages, i.e. the cost of the new replacement panels?
Pennsylvania Subscriber
I'm afraid there really is no way to afford coverage under the policy based on the definition of "property damage" added in endorsement CGD 90 33 04 09. The definition excludes coverage for any expense to replace the incorrectly installed panels, per the following:
"c. Property damage does not include any loss, cost or expense to correct any defective, faulty or incorrect work performed by you or by any contractors or subcontractors working directly or indirectly on your behalf."