Here’s the list of examples that I got from Acuity. Pay attention to each scenario.
The following situation describes some scenarios where property of others may be damaged that some may think could be covered under the Voluntary Property Damage endorsement. Read each separately and determine if each separate scenario would likely be covered or not.
Situation #1
Eric decides to start a little janitorial operation. Being a good business owner, Eric secures coverage with ACUITY and ensures his agent has placed the Voluntary Property Damage endorsement on his policy. Joel Wade has hired Eric to clean his house. Eric arrives at the Wade estate with his FloorCleaner 2000 floor cleaning machine, excited about his new customer. Eric starts up the machine, not realizing that he left it on the ‘Bare Floor’ setting. The machine chews up Joel’s prized shag carpeting, creating a bare spot in the carpet. Is the carpet damage covered?
Answer Situation #1—Misadjusted floor cleaner causes damage to carpet
This damage is not covered. The damage was due to faulty workmanship, in this case, the failure to have the machine set properly.
Situation #2
Concerned Joel would be mad at him; Eric tries to cover up the damage by moving a nearby couch over the area. However, Eric doesn’t realize Joel nails all of his furniture to the floor to prevent theft. Eric breaks the leg off the couch. Is the couch damage covered?
Answer Situation #2—Furniture is damaged while it is being moved
This damage is covered. The damage was not directly caused by faulty workmanship.
Situation #3
Still pulling hard on the couch, Eric drags it across the carpeting. Due to the now sharp pieces where couch’s legs once were, the prized shag carpeting is further damaged. Regardless if the damage in #1 is covered, is this new damage to the carpeting covered?
Answer Situation #3—Flooring is damaged due to reasons not related to floor cleaning
This damage is covered. The damage was not directly caused by faulty workmanship.
Situation #4
Hoping Joel is a forgiving individual, Eric resumes his cleaning activities. He adjusts the FloorCleaner 2000 to the correct setting and takes the machine to another room. While cleaning the carpet in the second room, Eric sees that the cleaning solution is turning Joel’s white carpet gray. Eric then realizes that he was supposed to use new solution, because of the big warning label on the FloorCleaner 2000 telling him that using old cleaning solution can stain carpeting. Is the damage to the carpet in room #2 covered?
Answer Situation #4—Carpeting is damaged after failure to follow normal cleaning procedures
This damage is not covered. Faulty workmanship (failure to follow prudent carpet cleaning procedures) caused the damage.
Situation #5
Angry that he’s ruined another carpet, Eric kicks the FloorCleaner 2000 in a fit of rage. His powerful kick ruptures the cleaning fluid compartment, spilling solution onto the carpet in a third room, damaging it as well. Is the damage to the carpet in room #3 covered?
Answer Situation #5—Flooring is damaged due to reasons not related to floor cleaning
The damage to the carpet is covered. The damage was not caused by faulty work.
Situation #6
Thinking he could still salvage Joel as a customer, Eric retrieves his spare cleaning machine to clean the one remaining room Joel had asked him to clean. Eric carefully checks every setting on the machine to make sure it’s correct. He opens up a fresh bottle of the solution recommended by the International Floor Cleaners Institute for the carpet he’s about to clean. He calls the carpet manufacturer to get their recommendation on what solution to use to make sure he’s using the correct liquid. After all of his checking, Eric turns on the machine and starts cleaning the last section of carpet. Halfway through, he realizes that the solution being used is staining this carpet as well. Is the damage to the carpet in room #4 covered?
Answer Situation #6—The proper solutions and settings are used, damage results anyway
The damage is (likely) covered. Unlike situation #1 and #4, this damage isn’t the result of faulty work. The work performed was prudent and according to the standards of carpet cleaners. Work was likely not ‘incorrectly performed’ in this instance.
Situation #7
Figuring his carpet cleaning career was over, but still wanting to do something nice for Joel, Eric picks up Joel’s damaged couch to load it into his truck so he can take it back to his shop to repair it. Overestimating his strength, he stumbles while carrying the couch, catching the couch’s upholstery on a doorknob and ripping it. Is the ripped upholstery on the couch covered?
11/3/08
Answer Situation #7—Personal Property is damaged while it is being loaded into insured’s vehicle
The damage to the couch is not covered. While the endorsement does provide coverage to Personal Property in the care, custody, or control of the insured, there are two exceptions. The property can’t be on the premises of the insured (that is, this endorsement doesn’t replace Bailee’s Coverage) and the property can’t be in the act of being loaded or unloaded from an auto (that is Cargo coverage).
Some other examples of damage that would not be covered with the endorsement due to ‘faulty work’.
A window washer uses an old squeegee to clean a window. Some exposed metal on the squeegee scratches the window that’s being cleaned.
A trim carpenter is installing some crown molding. A nail gun intended to be used for framing is inadvertently used and the larger nails damage the molding.
A painter damages trim work because they didn’t mask it off properly.
A carpenter is peeling labels off a window with a razor blade after they’re installed and scratches the window.
Now, I’m not a lawyer, but it seems to me if you combine #1 and #5 you should be good. If you scratch a window (#1) then you’re not covered. But if you throw a ladder through the scratched window (#5) you’re covered.
Anyone want to test this theory?
