PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE FORM (Excerpted)

SECTION I–COVERAGES-BODILY INJURY AND PROPERTY DAMAGE LIABILITY

1. Insuring Agreement

a. The insurance company agrees to pay amounts for which the insured is legally obligated for bodily injury and property damage covered by this insurance. Only bodily injury and property damage that fits within the defined products-completed operations hazard is covered.

b. Coverage applies to bodily injury and property damage caused by an occurrence that takes place in the coverage territory. The bodily injury and property damage must occur during the policy period.

c. When bodily injury or property damage occurs during the policy period all continuation, change or resumption of that particular bodily injury or property damage is covered as part of that specific policy period.

d. The policy explains exactly when bodily injury or property damage is considered to have become known.

e. Bodily injury damages are not limited to only the injured party’s claims. It includes damages for care, loss of services or death resulting at any time from the claimed bodily injury submitted by any party.

2. Exclusions

The broad coverage provided in the insuring agreement above is limited by this exclusion section. The coverage does not apply to the following:

g. Damage to Property

The insurance company does not pay for property damage to:

(1) Property the named insured owns, rents, or occupies.

(2) Premises the named insured sold gave away or abandoned. This exclusion applies when the property damage arises out of any part of those premises.

(3) Property loaned to the named insured

(4) Personal property in the insured's care, custody, or control

There are two exceptions:

Paragraph (2) above does not apply if the location is the named insured's work, and the named insured never occupied or rented the location or held it for rent.

Note: This is particularly important to homebuilders that build and sell homes. Without this exception, there would be no coverage once the home was sold. However, this exclusion does apply if the named insured used the home as an office or rented it out prior to selling it.

h. Damage to Your Product

Coverage does not apply to property damage to the named insured's product arising out of it or any part of it.

i. Damage to Your Work

There is no coverage for property damage to the named insured's work that arises out of it or any part of it included in the products/completed operations hazard.

There is an exception to this exclusion that applies to work performed by a subcontractor that the insured hired. Coverage applies if the damage to property is the result of the subcontractor’s completed work.