We insure a fertilizer application company under a CG 00 01 12 04 General Liability Coverage form. The insured utilized their listed equipment to apply seed and fertilizer to a customer's field in October. In December, the customer noticed that the seed/fertilize application was not completely uniform in its distribution across the field. They estimate that the application radius was short by 10% in its distribution. (i.e. the spreader was supposed to cover a 100 ft diameter behind the spreader, but only covered 90 ft.)

Members of our management team have differed on if coverage would apply under the insured's CGL policy. Some believe that this qualifies as "your work", and think that the improper application of the seed/fertilizer should be excluded. Others point to the Products Completed Operations Hazard and say that the 10% of the field that was not properly seeded and fertilized is the resulting damage and should be covered under that part of the policy. Other members think that the total yield of the field will be impacted, and that difference should reflect the damages owed.

Any thoughts?