Television Damaged during Testing

September 2, 2014

I have an insured (subcontractor) who has set up a number of electronics to test the system as part of his work. He is supposed to set it up and test it prior to the contractor taking it and installing it at its final location. The insured sets everything up and allows it to run for approximately two hours. A large 55″ display was set up using the box's styrofoam base as a base for the display. The box was taken off, and the TV was left in the bottom of the styrofoam as the tests were run. The display fell over during the testing period. The insured was in the room with the display and saw it fall over. The insured was not handling the display at the time it fell over. Does this qualify as being in the insured's care, custody, or control?

Georgia Subscriber

Exclusion J.(4) precludes coverage for property damage to personal property in the care, custody, or control of the insured.

A TV is personal property (as opposed to real property). Here, the insured was performing operations on the TV via the electronic test systems when the TV fell from its stand during the testing period. Even though the insured was not physically handling the TV when it was damaged, the insured was performing operations on it.

From the facts you've given, we assume the tests were being conducted at insured's premises and that the TV was in the insured's possession until it would be installed at its final location. Thus, the care, custody, or control exclusion is going to apply to the damage to the TV.

 

 

 

 

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