Loss of Use Claim

March 18, 2013

I have a general question with regard to a claim involving damage to the work/work product of the insured and the claim for damages associated therewith.

Assuming that the direct damage to a product/property an insured was working on that he damaged during that process is not covered (let's say for instance, a gate), would the loss of use of that gate be covered as resultant damage? Specifically, would the cost of retaining a security guard to provide security because the gate was inoperable while waiting for repairs to the gate be covered, even though the physical damage to the gate was not a covered occurrence?

Iowa Subscriber

The damage to property exclusion in the CGL form applies to property damage as defined. Property damage is defined as physical injury to tangible property and all resulting loss of use of that property. So, if the exclusion is applicable to the actual physical damage, it would also apply to any claim for loss of use.

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