Wrong Delivery of Liquid Products Endorsement

July 25, 2011

Endorsement CA 23 05 12/93, Wrong Delivery of Liquid Products, is an Amendment on Commercial Business Auto. I am being told that the endorsement excludes all wrong delivery, however the form says:
“Insurance does not apply to: BI or PD resulting from the delivery of any liquid into the wrong receptacle…….. If the BI or PD occurs after delivery has been completed” Can you tell me if this endorsement excludes all wrong deliveries?

Also, what is the purpose of the words “If the BI or PD occurs after delivery has been completed” How would this apply to a delivery of oil to a fill spout that has been removed and oil was pumped into a basement?

Indiana Subscriber

The endorsement applies only to BI or PD resulting from 3 listed reasons: delivery of any liquid into the wrong receptacle; delivery of any liquid to the wrong address; or delivery of one liquid for another. So, the exclusion does not apply to all wrong deliveries, just the 3 listed events. This is especially true since exclusions have to be read as narrowly as possible and any attempt to expand this exclusion beyond the listed events would not be acceptable.

The “after delivery has been completed” phrase simply means this is a completed operations exclusion. If the claim occurs while the wrong delivery is in progress, this exclusion is not applicable. The BI or PD has to be discovered or manifested after the delivery has been completed if the exclusion is to apply to the claim.

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