Our insured is a franchised auto dealer.  We write the dealer's physical damage coverage.  Our insured's shop employee placed an owned (held for sale) vehicle on a lift.  He did not properly position the vehicle and it fell off the back of the lift.  The car hit the shop floor doing major damage to the rear end.  The insurer has taken the position that coverage does not apply because of “improper service.”  The policy provides both comprehensive and collision coverage. 

My position is that this is not a vehicle service issue, but a collision of the vehicle with the shop floor.  To me improper service involves those items that are part of ongoing service to properly maintain a vehicle, e.g., changing fluids, spark plugs, etc.

Insurer is denying coverage based on policy language excluding “improper service.”