Minnesota Subscriber

A

Yes, the loss to the mirror itself is covered, but the cost to hang a new mirror is not.

The property damage to the mirror, which was the insured's product, did not arise out of the mirror itself. The mirror should be considered a product (and not materials, parts, or equipment furnished in connection with the insured's work) since it was the primary object of the buyer's purchase. Thus, exclusion l., excluding damage to the mirror arising out of any part of the mirror, does not apply and this is not a products liability loss.

The damage to the mirror arise out of either the work performed by the insured (such as using the wrong type of fastening device) or out of materials, parts, or equipment furnished in connection with the insured's work (i.e., the fastener itself was defective). Therefore, the damage to the mirror was a covered completed operations loss.

Exclusion m. states that no coverage applies to property damage to the insured's “work” arising out of the work. The insured's “work” includes the act of hanging the mirror and any part or material furnished in connection with the work — in this case, the fastener used to hang it.