The Crush Blender Company sold a blender to an individual. Subsequently, the blender malfunctioned, injured its owner, and caused a fire that burned down the owner's house. What would NOT be covered under the company's Products and Completed Operations coverage under the commercial general liability (CGL) Policy?
Replacement of the blender would NOT be covered under the company’s Products and Completed Operations coverage.
Products and Completed Operations coverage is designed to protect businesses from claims arising from products they manufacture or sell, including coverage for bodily injury and property damage caused by those products. However, it does not cover the replacement of the defective product itself, which would be considered a business expense.
Medical services related to injuries sustained from the malfunctioning blender would be covered under the Products and Completed Operations coverage. This protection includes any medical expenses incurred by the injured party as a direct result of the product's failure, ensuring that the company is liable for harm caused by its products.
If the fire caused by the malfunctioning blender led to the destruction of the owner's house, the associated property damage would typically be covered under the Products and Completed Operations coverage. This coverage applies to damages resulting from the product's failure, making the company responsible for compensating the property loss.
Ambulance transportation costs incurred due to injuries from the blender malfunction would also be covered under the Products and Completed Operations coverage. Similar to medical services, this aspect of liability ensures that the company is accountable for both immediate and ongoing medical needs related to the incident.
In summary, while Products and Completed Operations coverage provides protection for medical services, property damage, and related transport costs arising from product malfunctions, it does not extend to the replacement of the defective product itself. The responsibility for replacing the blender falls outside the scope of liability coverage, reflecting a business's obligation to manage its own product-related expenses.
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