The employees of an industrial heating and cooling company spent four days installing a large gas furnace in a newly-constructed building.While testing the furnace one week later,an explosion occurred,damaging the building.Damage to the building was covered under the heating and cooling company's general liability insurance.When the heating and cooling company also sought reimbursement for the time its employees spent installing the furnace,the insurer denied coverage and noted a specific applicable exclusion.What exclusion denies coverage for such reimbursement?

Question

Quizplus · Accepted Answer

The exclusion that denies coverage for reimbursement for the time spent installing the furnace is the "damage to the insured's work" exclusion. This exclusion applies to any damage to work performed by the insured or any materials or parts used in connection with the work. Since the employees of the heating and cooling company were installing the furnace, their work was damaged during the explosion, and as a result, the insurer denied coverage for the cost of the installation.

The Employees of an Industrial Heating and Cooling Company Spent