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 protects against liability for damages resulting from the use of products sold by a company. However, it does not cover the cost of replacing the defective product itself, in this case, the blender.
A) Medical services
Medical services would be covered under the company's Products and Completed Operations coverage as they pertain to injuries sustained by the owner due to the malfunctioning blender. This coverage is designed to address bodily injury claims resulting from the use of a product.
B) Replacement of the house
Replacement of the house would likely be covered under the policy since the fire caused by the malfunctioning blender led to property damage. This falls within the scope of liability coverage for damages caused by a product.
C) Replacement of the blender
Replacement of the blender is not covered under the company's Products and Completed Operations coverage because this insurance is intended to address liability claims rather than provide coverage for the actual product that caused the issue. Thus, the cost of replacing the faulty blender itself is excluded.
D) Ambulance transportation
Ambulance transportation would typically be covered under the Products and Completed Operations coverage as it relates to medical expenses incurred due to the injuries sustained from the malfunctioning blender. This is part of the liability protection offered to cover the consequences of using the product.
Conclusion
In summary, replacement of the blender is not covered under the Products and Completed Operations coverage because the insurance is focused on liability and damages resulting from the use of the product, rather than the product itself. Medical services, replacement of the house, and ambulance transportation all relate to liabilities incurred from injuries or damages, which is why they would be covered.