90. 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?
Answer: C
Replacement of the blender would NOT be covered under the company's Products and Completed Operations coverage.
Products and Completed Operations coverage typically addresses liabilities arising from the sale of products, including bodily injury and property damage caused by those products. However, it does not cover the costs associated with replacing the defective product itself.
A) Medical services
Medical services are generally covered under Products and Completed Operations coverage if they relate to injuries caused by the defective product. In this case, since the malfunctioning blender injured its owner, any necessary medical services would be covered under this policy.
B) Replacement of the house
The replacement of the house would be covered under the Products and Completed Operations coverage as it pertains to property damage resulting from the malfunction of the blender. The fire caused by the blender's failure is a direct result of a liability for which the company could be held responsible.
C) Replacement of the blender
The replacement of the blender itself is not covered under the Products and Completed Operations coverage. This type of insurance is designed to cover damages and injuries caused by the product, not to cover the costs of the product itself, making this option correct.
D) Ambulance transportation
Ambulance transportation costs would be covered under the Products and Completed Operations coverage as they are related to the injuries sustained by the owner due to the malfunctioning blender. As part of the liability stemming from the incident, these costs are typically included in the coverage.
Conclusion
In summary, the replacement of the blender is not covered because the insurance policy focuses on injuries and damages caused by the product rather than the product's own replacement. Options A, B, and D are all related to liabilities arising from the product's failure and hence are covered, reinforcing that C is the only option that does not align with the coverage intent.