PD Exclusions--#2

    The Two Famous products/completed operations exclusions remind us that we may for “arising loss” and not the work or product itself. We should have never called it products/completed operations! You will see links if you want more info on important topics.

 “K" “pd to the product”--we never pay for the product itself even if you write products recall. The concept of liability is to pay for “arising loss”. This was actually improved in 1986 when we made it clear that ‘real property’ was not a product.

"L" --Property Damage to "your work"--ALL contractors have exposure in this area!

      Work of subs is covered.  However, we still exclude your work/thing arising out                                        of your work! Watch out for the CG 22 94 as this endorsement is a real coverage reduction!

       Obviously--the whole  ISSUE of OCCURRENCE is huge here.

How to handle if CGL is not good enough:

1- Other specialty market forms/endorsements

2- Waiver between buyer and seller after the work is completed.
       It is interesting that there is often a waiver of subrogation during the work; 
        why not after the work is done for "which the owner has insurance".

3- PD deductible approach for this and other exclusions.
          (good luck with this!)

“M” & “N”--Business Risk and Product/Work Recall/Repair/Replacement. 
        These exclusions remind us that liability pays for------


These 2 exclusions are the only place that you find the definition
Impaired Property ”. Remember that “impaired property” is property OTHER than “your product” or “your work” and it can be fixed. As always, GL needs a BOOM; a snap/crackle/pop!

“O”—The trend in all lines is to exclude losses to electronic data and
          other “e”-risk situations. Buybacks are available.



Most GL "Issues" come in 5 Key Areas. Over the years I have called this my "Big 5". Here is a link for that recap. BIG 5

ODDS & Ends--

*Classified Correctly?

*Discontinued Products/Completed OperationEnd