Our insured, an auto repair shop with a garagekeepers coverage endorsement CA 99 37, put a customer's auto on his lift to rotate the tires. He completed the job and the customer left. The next day the customer returned with an estimate for $915.00 alleging that the insured had lifted the auto in the wrong area, resulting in buckled fenders.

The company has denied coverage under the faulty work exclusion. We do not believe that this exclusion applies, as the insured was not working on the fenders. His work performed was rotating the tires. What is your opinion?

Ohio Subscriber

We agree with you. The insured's “work” was to rotate tires. There is no complaint about the effectiveness of the work. Lifting the car in order to perform the job is a necessary step in doing the work, but it is not “the work.” Driving the car onto the hoist is also a necessary step in performing the task, but colliding with another object on the way to the hoist is not faulty work in terms of tire rotation.

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