Work You Performed Exclusion not Applicable to Safety Inspection

July 12, 2010

Our insured has a garage coverage form. He was hired to inspect a customer's car for the state annual inspection. A part of the inspection included removing the right rear tire to inspect the rear brakes. Upon inspection of the brakes, the tire was re-installed and the lug nuts tightened. A short time after the customer left the repair shop, the right rear tire fell off the car.

Evidence supported the fact that the mechanic did not properly tighten the lug nuts. As a result of the mechanic's negligence, the tire experienced $500 worth of damage. At issue, was the tire and rim damage part of the work the insured's mechanic performed? What about the lost lug nuts? Are they work performed by the insured's mechanic?

Pennsylvania Subscriber

This would be a case of completed operations so the work you performed exclusion on the garage form needs to be examined. The work performed by the insured in this instance was the safety inspection. He was not working on the tire or the rim or the lug nuts. The fact that the mechanic removed the tire to inspect the brakes does not make the tire and rim his work; they were merely incidental to his work. There was no property damage to his work, that is, his inspection, and so, the work you performed exclusion will not apply. Exclusions are meant to be read and applied as narrowly as possible so as to give the insured as much coverage as is reasonable.

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