Business Risk Exclusion

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Business Risk Exclusion

A clause in a business's insurance policy stating that it does not provide coverage for products that do not meet the company's quality specifications. For example, if a company produces widgets guaranteed to last 15 years and they only last four, the company's insurance may not cover refunds or other losses because of the business risk exclusion.
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He has experience with a variety of coverages including general liability, professional liability, commerical auto, property, businessowner's and homeowner's policies, and has successfully prevailed in Illinois cases of first impression applying the business risk exclusions and the false pretense exclusion.
broad form general liability policy currently in use contains three exclusions, generally referred to collectively as the "business risk exclusions," as follows:
For example, when a third party files a liability claim for damage or injury involving an insured's product or work, adjusters sometimes see the words "product" or "project" and turn to a boilerplate litany of the business risk exclusions. However, merely citing them and then adding that "other exclusions also may apply," isn't quite as valuable to the insured as it should be.
Collectively referred to as the business risk exclusions, they provide a road map of the difference between the uninsurable cost of doing business and insurable business liabilities.
The third edition contains updated coverage of various issues related to commercial general liability policy, including pollution-related coverage, government-imposed cleanup, trigger of coverage, and business risk exclusions. A chapter is supplied on those coverage problems expected to arise concerning e-commerce and other electronic media.
Century Surety Co.--were the standard-form business risk exclusions in the gas company's policy.
The court then circumnavigated existing case law which had recognized that mere delivery of a defective product doesn't constitute an occurrence, by stating: "CGL policies generally do not cover contract claims arising out of the insured's defective work or product, but this is by operation of the CGL business risk exclusions, not because a loss actionable only in contract can never be the result of an 'occurrence.'"
Added the Court We agree that CGL policies generally do not cover contract claims arising out of the insured's defective work or product, but this is by operation of the CGL's business risk exclusions, not because a loss actionable only in contract can never be the result of an "occurrence" within the meaning of the CGL's initial grant of coverage.
It will also feature news on property damage interpretations, mold, occurrence, business risk exclusions, additional insureds, bad faith, obligations to pay, and allocation, as well as full-text court documents and expert commentary.
Mealey said the new title is being launched to cover "this dynamic and evolving area of insurance law." Among the featured content of the monthly report will be news on mold ligitation and construction law coverage of such issues as occurrence, business risk exclusions, property damage interpretations, obligations to pay, additional insureds and bad faith, among others.
The policyholder argued that the exception to Exclusion "a" provided coverage or, alternatively, that the exception, when read in conjunction with the "business risk" exclusions, was confusing because coverage granted by the former clause appeared to be taken away by the business risk exclusions. The New Jersey Supreme Court determined that by noting that in the Insuring Agreement the qualifying phrase, "to which this insurance applies" underscored "the basic notion that the premium paid by the insured does not buy coverage for all property damage, but only for the type of damage provided for in the policy.
The business risk exclusions are designed to make certain that the insured's responsibility for the performance and quality of its own work or products is not passed off to its liability insurer.
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