The insured who is an oriental rug cleaner had a claim during the cleaning process at their premises. The loss occurred during the cleaning process where the rug was hung to dry from wooden pegs that have a small steel pin as part of the mechanical process that managed to weep some moisture associated w/ some rust from the steel pin that damaged/stained the rug.

The claim has been denied on both the property and liability sides. Insured has endorsements IM 7550 Z 06 04 Bailee Customer Floater coverage Dry Cleaners and Laundry Form. WB 1166 04 14 Voluntary Property Damage Coverage BP0003 0713 Businessowners coverage form

Please see attachment of our review.