Would there be coverage under the GL policy, CGL form CGT1000219 for any portion of the damages as described on the attached information sheet. Please let me know what additional info you might need to assess this coverage issue.
Description of Loss:
- Insured was doing work for a customer who contracted the insured to replace 48 volt battery stings, the batteries are kept charged by rectifiers.
- The insured was putting new batteries in to replace the old batteries.
- The insured installer, strapped the batteries and reconnected the leads backwards and it tripped the breaker and damaged all the rectifiers.
- They had to replace 6 rectifiers which were $400 each.
- The rectifiers were damaged, that was the only damage.
- The insured replaced the 6 rectifiers.
- The insured did not get paid for the job as a result of the breaker tripping and damaging the rectifiers.
- There is labor for the job and labor to reinstall the rectifiers.
Exclusions:
I. Damage To Your Work
"Property damage" to "your work" arising out of it or any part of it and included in the "products-completed operations hazard".
This exclusion does not apply if the damaged work or the work out of which the damage arises was performed on your behalf by a subcontractor.
Pennsylvania Subscriber
Based on the exclusion for damage to your work, there would be no coverage for the damaged rectifiers or their replacements, or for the insured's work in completing the replacement rectifiers. As an installer, the coverage form assumes the insured knows their job and therefore the policy excludes faulty workmanship on the part of the insured.
If the work were done by a subcontractor instead of the insured, then the exclusion would not apply.
The work was considered completed when the insured replaced the rectifiers and the replaced batteries were put to their intended use. Even so, there still would be no coverage even if the insured were still on the premises because the work still needed correction/replacement, as described in the definition of "products-completed operations hazard":
… Work that may need service, maintenance, correction, repair or replacement, but which is otherwise complete, will be treated as completed.
As for no payment for the insured's work, while the insurance coverage does not apply, the insured should receive payment from the customer for his completed work of replacing the batteries – except for labor and materials specific to the replacement of the rectifiers.