We insure a contractor's liability under the CG 00 01 12 04 Coverage form. The insured had installed flooring and painted a wall in a kitchen of a condo. They pulled the refrigerator out, painted the wall behind it, and then put the refrigerator back. In pushing the fridge back, the supply line to the fridge kinked and broke. Water leaked from the supply line and damaged the just installed floors, the drywall behind the fridge, and water damaged the two units below this condo.

What coverage will the liability form provide?

All members of our management team agree that the contractors liability should cover the damages to two units below the unit where work is being performed. Covering the damages to the unit and the work just completed by the contractor is where we have differing opinions on applying coverage.