Our insured is a warehouse operator. Our insured mistakenly shipped 3 drums of an incorrect product to their customer's customer who then used the product in the drums in their product line resulting in damage. The carrier cited the following exclusions in denying the claim, none of which we believe apply. Exclusion M. Damage to Impaired Property or Property not Physically Injured; Exclusion N. Recall of Products, Work or Impaired Property.
The misshipment was our insured's only mistake. Does misshipment really qualify as Your Work and/or Your Product? It was not the insured's drum. It belonged to the insured's customer. The end result was damage to the end user's property along with income loss and clean-up of the wrong product from their manufacturing line.
Pennsylvania Subscriber
Unfortunately for the insured, inserting the incorrect product into the drums and shipping it out was indeed the insured's work that would be subject to the exclusion for property damage due to "your work". Referring to the definition in the CG 00 01, your work (in part) means work or operations performed by you or on your behalf. The exclusions referenced are not those found in the standard ISO CGL so if you need additional information specific to this claim, we will need to see the actual policy.