Messy Masonry, Inc. was hired as a subcontractor on a new home construction. Their job was to install two giant bay windows overlooking a lake, but they ended up splashing mortar on one of them. When they attempted to scrub it off, the window was scratched. As for the other window... another subcontractor, Outside the Lines Painting, was hired to paint the window frames, but accidentally sanded part of the windows in that process. The homeowner found the scratches months later.
Notable Timestamps
[ 00:00 ] - A construction scenario involves Messy Masonry splashing mortar and scratching a bay window, and Outside the Lines Painting sanding another window, damaging the glass.
[ 01:26 ] - The "damage to property" exclusion, particularly j(5) and j(6), is a complex and often confusing aspect of the CGL policy.
[ 03:43 ] - Courts have ruled that if damage results from work product done incorrectly, it's not an "occurrence" and therefore not covered by a CGL policy, even before exclusions are considered.
[ 05:28 ] - The j(5) exclusion applies to property damage on "that particular part of real property" where the insured or subcontractors are performing operations, if the damage arises from those operations.
[ 06:03 ] - The j(6) exclusion covers "that particular part of any property" requiring repair or replacement due to "your work" being incorrectly performed.
[ 11:32 ] - Courts have viewed incidental tasks, such as cleaning up mortar, as part of "performing operations," meaning damage occurring during such tasks can fall under the exclusion.
[ 17:13 ] - The specific scope of a subcontractor's contract, detailing what work they were hired to perform, is a crucial factor in determining the applicability of CGL policy exclusions.
[ 17:37 ] - Brennan provides a summary of the key takeaways.
Your PLRB Resources
Upcoming Course: All About the CGL Damage to Property Exclusion - Coming Soon!
Learning Path: What Part is "That Particular Part" in the CGL j.(5) and j.(6) Exclusions? - https://members.plrb.org/education/courses/what-part-is-that-particular-part-in-the-cgl-j5-and-j6-exclusions
Advantage Homebuilding LLC v. Maryland Cas. Co. 470, F3d 1003 (10th Cir. Kan. 2006). https://www.plrb.org/documents/advantage-homebuilding-llc-v-maryland-cas-co-2007/
Alverson v. Northwestern Nat. Cas. Co., 559 N.W.2d 234 (S.D. 1997) https://www.plrb.org/documents/alverson-v-northwestern-natl-cas-co-1997/
Employers Mut. Cas. Co. v. Pires, 723 A.2d 295 (R.I. 1999) https://www.plrb.org/documents/employers-mut-cas-co-v-pires-1999/
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