Volume 223

JULY 2025

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PF&M ANALYSIS:

ADDITIONAL EXCLUSIONS THAT APPLY ONLY TO PROPERTY DAMAGE

ADDITIONAL EXCLUSIONS THAT APPLY ONLY TO PROPERTY DAMAGE

1. Fire Legal Liability

The only property damage coverage for property owned or occupied by, or rented to, the named insured is that which is provided by Coverage O–Fire Legal Liability.

2. Sold or Abandoned

Coverage does not apply to property damage to premises sold, given away or abandoned by the named insured, if the property damage arises out of any part of those premises. The exception to this exclusion is premises that were the named insured's work and were never occupied, rented or held for rent by the named insured.

3. Used By or Loaned To

Property used by or loaned to the named insured is not covered for property damage. The exception to this exclusion is any liability assumed under a sidetrack agreement.

4. Care, Custody or Control

There is no coverage for property damage to any type of personal property while that property is in the insured's care, custody or control. The exception to this exclusion is any liability assumed under a sidetrack agreement.

Note: Although the commercial liability coverage form does not have an endorsement that provides coverage for property in the insured's care, custody, or control, many insurance companies have developed their own forms or endorsements to do so. In addition, Inland Marine Bailees insurance is available and covers the property of customers or clients in the insured's care, custody, or control.

5. Specific Part of Real Property

Property damage to the specific part of real property being worked on is not covered if the property damage arises out of that work being performed. This applies if the work is being performed by the named insured or by a contractor or subcontractor working directly or indirectly on behalf of the named insured.

6. Specific Part of Property

Property damage to that specific part of any property that must be restored, replaced or repaired because mistakes in the named insured's work are not covered. There are two exceptions to this exclusion. If the property damage is considered products/completed work hazard, there is coverage. Also, liability assumed under a sidetrack agreement is covered.

7. Named Insured’s Products

Property damage to the named insured’s products is not covered when the damage is a result of the products themselves or their parts.