Impaired Property Exclusion and Possible Future Losses

The insured's plastic buckles were incorporated into swimming suits manufactured by a customer. After installation, some of the buckles broke. The customer has made claim for the cost of removing and replacing all the buckles that had already been sewn into the swimming suits. We believe the exception to the impaired property exclusion applies to those swimming suits whose buckles actually broke, but does the exception also extend to all of the other swimming suits on which the buckle may not have yet broken?

Iowa Subscriber