Q
Our insured sanded and refinished a large pine floor. Months later, the floor began to split and crack. Apparently the finish put on the floor was too heavy and the floor boards were not properly expanded through humidification methods prior to the beginning of the work. Finish was thus allowed to seep between the floor boards and side bonding (gluing) at the joints resulted. So, the floor boards were unable to naturally contract at the joints and the boards themselves split. The customer demanded the insured repair the damage. When the insured made a claim to his insurer, coverage was denied based on exclusions (j.5), (j.6), (k), and (l) of the CGL form.
As I read the CGL form, this is a products and completed operations hazard that should be covered. This is what completed operations coverage is designed to protect. What is your opinion?
Wisconsin Subscriber
A
We do not agree with the insurer that the damage to property exclusion (j) or the damage to your product exclusion (k) are applicable. This was a completed operations claim and the parts of the damage to property exclusion cited by the adjuster are not for completed operations. Also, this was the insured's work and not a product. There was no damage to the insured's product.
But, we do believe that the damage to your work exclusion (l) is applicable. That exclusion pertains to completed operations and this is the case in your situation. The insured's work was refinishing the floor and from the investigation of the loss, it seems that the insured did not do his work properly. The exclusion is intended to keep the CGL form from acting as a warranty for the insured's work and to keep the CGL form from being an insurance policy for faulty work. If the insured's work had caused damage to some other property (for example, the customer's furniture), or if it had caused some bodily injury, the CGL form would cover these things as damage arising from a completed operation. However, this claim involved property damage to your insured's work arising out of his work, and that the CGL form will not cover.
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