Doubt: Products and completed operations

Doubt: Products and completed operations

by Michael Sosa -
Number of replies: 3
Dear Jan:
I have some doubts related to this question.
These should not be a consumer negligence rather than being attributed to the insured?
I chose A but the correct answer is C.
 
Which of the following would be covered by the products and completed operations exposure of the CGL?
Select one:
A. None of the answers are correct Incorrect
B. A weed eater purchased by the claimant and being used to trim weeds at their home damages the claimant's pants
C. Both of the answers are correct
D. A claimant spills hot coffee on himself or herself after driving through the drive through at the fast food restaurant
In reply to Michael Sosa

Re: Doubt: Products and completed operations

by Jan Bradburn- -

Hi Michael, 

Good question!  It is the question asked and answered by claims adjusters every day. Where does product accountability stop and consumer negligence begin. Both of these scenarios could easily be attributed to the insured.  The insured served the coffee too hot (an actual case in the news) or the weed eater malfunctioned causing damage to the insured clothes. Are both of these scenarios covered by Products and Completed Operations exposure?  Yes, they are. It is up to the adjuster to determine if they are legitimate claims or consumer negligence. 

Jan

In reply to Jan Bradburn-

Re: Doubt: Products and completed operations

by Michael Sosa -

Thank you Jan. 

That is good for the real life analysis, but, what will happen if I find the same question in the exam? I have to answer like the policy will cover those cases?

In reply to Michael Sosa

Re: Doubt: Products and completed operations

by Jan Bradburn- -

Yes - the policy does cover those cases.  In real-life, the insurance company can push back if they suspect customer negligence, but bottom line - the policy covers these scenarios. 

Jan