Title: Harford Mut. Ins. Co. v. Moorhead
Citation: 396 Pa. Super. 234, 578 A.2d 492
Docket Number: N/A
State: Pennsylvania
Issuer: Pennsylvania Supreme Court
Date: July 25, 1990

396 Pa. Superior Ct. 234 (1990) 578 A.2d 492 The HARFORD MUTUAL INSURANCE COMPANY, Appellant, v. Douglas P. MOORHEAD and Marlene B. Moorhead, His Wife, Individually and Trading and Doing Business as Presque Isle Wine Cellars, George A. Stevens and Carla Stevens, His Wife Joseph Bordonaro and Rebecca Bordonaro, His Wife, Trading and Doing Business as Bordonaro's Fruit Stand, Ralph Gagliordi, Crosby &amp; Baker Wine Makers Ltd., and Oak Barrel Wine Crafts, Oregon Specialty Co., Gateway Hardware Company, Sesol France and Schenley Distillers, Inc., Appellee. Supreme Court of Pennsylvania. Argued December 6, 1989. Filed July 25, 1990. *235 Michael S. Jan Janin, Erie, for appellant. William J. Kelly, Erie, for Douglas and Marlene Moorhead, appellees. Before DEL SOLE, KELLY and HESTER, JJ. KELLY, Judge: In this opinion we are called upon to decide whether under a comprehensive general liability insurance policy, the duty to defend an insured from liability in a civil suit where the insured is sued on the basis of a "negligent failure to warn" is removed by a "Products Hazard" exclusion. *236 We find that the duty to defend exists in this action, and affirm. The underlying facts of this appeal were accurately set forth in the trial court opinion as follows: Trial Court Opinion at 1-3. Subsequently, Harford filed a declaratory judgment action seeking a determination of whether the insurance policy *237 issued to the Moorheads covered the liability which may be incurred as a result of the instant suit, and derivatively, whether or not Harford owed a duty to defend the Moorheads in the underlying litigation. Each party thereafter filed summary judgment motions. The trial court agreed with the Moorheads and entered judgment in their favor. Harford later filed this timely appeal. At the outset, we note that in reviewing orders granting summary judgment, our scope of review is limited. This Court has previously summarized the appropriate standard as follows: Kerns v. Methodist Hospital, 393 Pa.Super. 533, ___, 574 A.2d 1068, 1069-70 (1990); Salerno v. Philadelphia Newspapers, 377 Pa.Super. 83, 88-9, 546 A.2d 1168, 1170-71 (1988) (citations omitted); Pa.R.C.P. 1035(d). Mindful of this standard, we turn to Harford's appeal. Instantly, Harford contends that summary judgment was improperly granted because the policy established no duty to cover or defend the Moorheads for the precise claim asserted in the underlying litigation. Specifically, Harford maintains that the "Products Hazard" exclusion contained in the subject policy was intended to exclude coverage of an action brought against the insureds which alleged injuries sustained as a result of products sold by the Moorheads. *238 Harford construes the exclusion to preclude coverage of "products liability" actions, and argues that despite the fact that the complaint contains only allegations of "negligence," the essence of the underlying complaint is one of products liability. Essentially, Harford contends that the decision to phrase the instant complaint under the guise of negligence was an exercise of mere semantical gamesmanship designed to circumvent the intent of the "Products Hazard" exclusion. In response, the Moorheads argue that the terms of the instant "Products Hazard" exclusion do not unambiguously exclude a claim that the insured was negligent in failing to provide warnings or instructions. The Moorheads submit that the allegations of the instant complaint charge them with negligent conduct only, and as such, coverage and defense should be provided. The trial court embraced the Moorhead's arguments. An insurer's duty to defend the insured is dependent upon the derivative question of coverage. It is well established that while an insurer is not required to defend an insured in every claim brought against it, an insurer must defend in any suit in which there exists actual or potential coverage. Gene's Restaurant v. Nationwide Ins., 519 Pa. 306, 308, 548 A.2d 246, 246 (1988); Gideon v. State Farm Mutual Automobile Ins. Co., 410 Pa. 55, 58, 188 A.2d 320, 321-22 (1963); Techalloy Co. v. Reliance Ins. Co., 338 Pa.Super. 1, 8, 487 A.2d 820, 824 (1984); see also D'Auria v. Zurich Ins. Co., 352 Pa.Super. 231, 234, 507 A.2d 857, 859 (1986). The terms of the policy must be compared to the nature of the allegations of the complaint, and a determination made as to whether, if the allegations are sustained, the insurer would be obligated to incur the expense of the judgment. Gene's Restaurant, supra, 548 A.2d at 246; see also Springfield Tp., et al. v. Indemnity Ins. Co. of North America, 361 Pa. 461, 64 A.2d 761 (1949); Donegal Mutual Ins. Co. v. Ferrara, 380 Pa.Super. 588, 552 A.2d 699 (1989); D'Auria v. Zurich Ins. Co, supra; Vale Chemical Co. v. *239 Hartford Acc. &amp; Indem., 340 Pa.Super. 510, 490 A.2d 896 (1985); Eastcoast Equipment Co. v. Maryland Casualty Co., 207 Pa.Super. 383, 218 A.2d 91 (1966). The policy the Moorheads purchased from Harford to protect themselves from potential lawsuits, commonly referred to as a comprehensive general liability insurance policy, provides that coverage shall extend to "all sums which the insured shall become legally obligated to pay as damages because of (a) bodily injury, or (b) property damage to which this insurance applies. . . ." Policy rider at L6395(a) (Ed. 1-73). This broad declaration of coverage is limited, however, by exclusions found elsewhere in the policy, to wit: Policy rider GL21 04-0766 (emphasis added). The latter of these exclusions is more specifically defined in a separate paragraph as follows: Endorsement MP 00 90 (Ed. 07 77) (emphasis added). No other definitions of or references to the "Products Hazard" exclusion are offered. In interpreting this policy, we must remember that foremost among insurance laws regarding the reviewing court's determination of policy coverage, remain the general rules of policy construction. To promote stability and predictability between parties in a contractual relationship, the common law has assigned to the courts the task of interpreting the intent of the parties. DiFabio v. Centaur Ins. Co., 366 *240 Pa.Super. 590, 593, 531 A.2d 1141, 1142 (1987). Words of an insurance policy which are unambiguous and clearly reflect the intent of the parties should be construed according to their plain and ordinary meaning, and we should give effect to that language. See Hutchison v. Sunbeam Coal Corp., 513 Pa. 192, 519 A.2d 385 (1986); Standard Venetian Blind Co. v. American Empire Ins., 503 Pa. 300, 469 A.2d 563 (1983); Pennsylvania Manufacturers' Assn. Ins. Co. v. Aetna Casualty and Surety Ins. Co., 426 Pa. 453, 233 A.2d 548 (1967). However, overly-subtle or technical interpretations may not be used to defeat reasonable expectations of insureds. See Huffman v. Aetna Life and Cas. Co., 337 Pa.Super. 274, 486 A.2d 1330 (1984). Thus, where reasonably intelligent people could differ as to the meaning of a contractual provision, the term may properly be characterized as ambiguous. Loomer v. M.R.T. Flying Service, Inc., 384 Pa.Super. 244, 247, 558 A.2d 103, 105 (1989); Musisko v. Equitable Life Assurance Society, 344 Pa.Super. 101, 496 A.2d 28 (1985). In light of the "manifest inequality of bargaining power between an insurance company and a purchaser of insurance," see Standard Venetian Blind, supra, 469 A.2d at 567, ambiguities must be resolved contra proferentem, or against the insurer as drafter of the agreement. DiFabio v. Centaur, supra, 531 A.2d at 1142; see also Rusiski v. Pribonic, 511 Pa. 383, 515 A.2d 507 (1986). The instant dispute revolves around the interpretation of a provision which has been construed by this Court previously. In Friestad v. Travelers Indemnity Co., 260 Pa.Super. 178, 393 A.2d 1212 (1978), this Court was faced with the question of whether coverage under a similar comprehensive general liability insurance policy was precluded by an identical "Products Hazard" exclusion where an insured was sued for negligently installing a furnace. Friestad, supra, 393 A.2d at 1213. Writing for the majority, in a comprehensive opinion which traced the historical and evolutionary distinction between several typical policy exclusions, Judge Cercone reasoned that as "the principal *241 thrust of a products hazard [coverage] is the insured's manufacture or sale of a product," id. 393 A.2d at 1213 n. 2, "it is more preferable by far to define the products hazard in terms of products liability law, and apply the exclusion only when a product, rather than a service, is the cause in fact of damages or injury to a third person." Friestad, supra, 393 A.2d at 1217. Thus, Judge Cercone concluded, where the insureds are sued merely for negligently servicing a product, the "Products Hazard" exclusion would not apply. Id., 393 A.2d at 1217. Numerous courts in other jurisdictions have reached similar conclusions in interpreting the language of the common "Products Hazard" exclusion found herein. The Arizona Court of Appeals, faced with a similar question of the applicability of the exclusion in Brewer v. Home Ins. Co., 147 Ariz. 427, 710 P.2d 1082 (1985), cogently summarized many of the leading cases on point, and concluded: Id., 710 P.2d at 1086 (emphasis added) (citing Viger v. Commercial Ins. Co., 707 F.2d 769 (3d Cir. 1983) ("Products Hazard" exclusion applicable where complaint alleged failure to warn of contaminated fish); Buckeye Union Ins. Co. v. Liberty Solvents &amp; Chemicals Co., 17 Ohio App.3d 127, 477 N.E.2d 1227 (1984) ("Products Hazard" exclusion not applicable where complaint alleged negligent mishandling of waste product, not defective condition of product itself); K-C Mfg. Co. v. Shelby Mut. Ins. Co., 434 So. 2d 1004 (Fla.Dist.Ct.App. 1983) ("Products Hazard" exclusion applicable *242 where complaint alleged failure to warn of defective nature of go-cart); Aetna Cas. &amp; Sur. Co. v. Richmond, 76 Cal. App. 3d 645, 143 Cal. Rptr. 75 (1977) ("Products Hazard" exclusion not applicable where complaint alleged negligent and careless adjustment of ski bindings); Templet v. Goodyear Tire &amp; Rubber Co., 341 So. 2d 1248 (La.Ct.App. 1976)) ("Products Hazard" protection not available where complaint alleged seller failed to warn of dangers associated in mounting a tire from the wrong side of the rim); Cooling v. United States Fid. &amp; Guar. Co., 269 So. 2d 294 (La.Ct.App. 1972) ("Products Hazard" exclusion not applicable where complaint alleged failure to warn of need for using safety devices with products)); see also LaBatt Co. v. Hartford Lloyd's Ins. Co., 776 S.W.2d 795 (Tex.App. 1989) ("Products Hazard" exclusion applicable where complaint alleged failure to warn of dangerous chemical contained in food). We find the Brewer court's conclusion supported by relevant cases, and consistent with this Court's holding in Friestad. Alleged negligence which does not involve the sale of a defective product is of a type which "occurs occasionally in the course of business and is a risk for which businesses buy general coverage." Cooling v. United States Fid. &amp; Guar. Co., supra, 269 So. 2d at 297. To construe a "Products Hazard" exclusion to apply in a suit later brought against an insured where the product sold was not the cause of the damage, but was merely an incidental instrumentality through which the damage was done, would defeat the purpose of purchasing such a policy by rendering meaningless much of the stated coverage. See Florida Farm Bureau Mutual Insurance Co. v. Gaskins, 405 So. 2d 1013, 1015 (Fla.Dist.Ct.App. 1981). Thus, we conclude, as did this Court in Friestad, that the "Products Hazard" exclusion applies only when a product, rather than a service, is the alleged cause in fact of damages or injury to a third person. The pleadings in the underlying litigation include the following allegations in Count I of the complaint entitled "Negligence." Plaintiff's Complaint Against Additional Defendants at 3-4 (emphasis added). The trial court, in reviewing the nature of this complaint, found, Trial Court Opinion at 5 (emphasis added). Harford, on the other hand, suggests the instant complaint should be construed under the rubric of "products liability" and not "negligence." Harford argues that although the plaintiff has alleged "negligence" in his complaint, the failure to instruct as to the proper use or to warn as to the dangers of improper use of a product are common elements of proof involved in establishing that a product is "defective" and therefore "unsafe," and thus the instant complaint is merely a "defective product" claim repackaged semantically to evade the "product hazard" exclusion. It is true, as Harford urges, that a product may be rendered "defective" because it lacks necessary warnings or instructions which the seller should have supplied. In the landmark decision Webb v. Zern, 422 Pa. 424, 220 A.2d 853 (1966), the theory of strict liability was adopted with regard to defective products in Pennsylvania. In Berkebile v. Brantly Helicopter Corporation, 462 Pa. 83, 337 A.2d 893 (1975), a plurality of our Supreme Court observed that under strict liability: Id., 337 A.2d at 902-903 (citations omitted). Three years later, in Azzarello v. Black Brothers Co., Inc., 480 Pa. 547, 391 A.2d 1020 (1978), a majority of our Supreme Court adopted the position taken by the Berkebile plurality, thus removing any doubt as to the viability of a claim alleging a failure to warn under the auspices of strict liability. Since that time, a multitude of cases alleging strict liability in tort for the failure to adequately instruct or to warn have been recognized under the theory included in § 402A of the Restatement (Second) of Torts.[1]See e.g. Mackowick v. Westinghouse Electric Corporation, ___ Pa. ___, 575 A.2d 100 (1990); Sherk v. Daisy-Heddon, Etc., 498 Pa. 594, 450 A.2d 615 (1982); Toth v. Economy Forms Corp., 391 Pa.Super. 383, 571 A.2d 420 (1990); Walton v. Avco, 383 Pa.Super. 518, 557 A.2d 372 (1989); Ellis v. Chicago Bridge &amp; Iron Co., 376 Pa.Super. 220, 545 A.2d 906 (1988); Carrecter v. Colson Equipment Co., 346 Pa.Super. 95, 499 A.2d 326 (1985); Fravel v. Suzuki Motor Co. Ltd., 337 Pa.Super. 97, 486 A.2d 498 (1984); Dambacher by Dambacher v. Mallis, 336 Pa.Super. 22, 485 A.2d 408 (1984); Pegg v. General Motors Corp., 258 Pa.Super 59, 391 A.2d 1074 (1978); Snyder *246 v. City of Philadelphia, 129 Pa.Cmwlth. 89, 564 A.2d 1036 (1989). However, it is also true, as the Moorheads counter, and as the complaint avers, that a seller or supplier of products may be deemed "negligent" as well for failing to provide adequate warnings or instructions which a reasonable seller or supplier would have. See Wissman v. General Tire Co., 327 Pa. 215, 217, 192 A. 633, 634 (1937) (citing Rosebrock v. General Electric Co., 236 N.Y. 227, 140 N.E. 571 (1923) (finding liability where defendant negligently supplied chattels likely to be dangerous for the use for which they were supplied); Bisson v. John B. Kelly, Inc, 314 Pa. 99, 170 A. 139 (1934) (finding liability where defendant negligently manufactured chattels likely to be dangerous for the use for which they were supplied); Griffith v. Atlantic Refining Co., 305 Pa. 386, 157 A. 791 (1931) (same). Indeed, there exist at least five sections in the Restatement (Second) of Torts, i.e. §§ 388,[2] 392,[3] 394,[4] 395,[5] and 398,[6] which *247 could arguably be used as a vehicle to establish negligence in failing to instruct or warn. Moreover, each of these sections, notwithstanding amenability to expression under products liability theories, have been cited with approval by the courts of this Commonwealth in negligence actions. See e.g. Thomas v. Arvon Products Co., 424 Pa. 365, 370, 227 A.2d 897, 900 (1967) (citing § 388); Thomas v. Ribble, 404 Pa. 296, 299-300, 172 A.2d 280, 282 (1961) (same); Dunn v. Atlantic Refining Company, 391 Pa. 65, 69, 137 A.2d 262, 264 (1958) (same); Foley v. Pittsburgh-Des Moines Co., 363 Pa. 1, 29-38, 68 A.2d 517, 529-32 (1949) (citing §§ 388, 394, and 395 and collecting authorities); Scurfield v. Federal Laboratories, 335 Pa. 145, 150, 6 A.2d 559, 561 (1939) (citing §§ 394, 395, &amp; 398); Gray v. H.C. Duke &amp; Sons, Inc., 387 Pa.Super 95, 110-12, 563 A.2d 1201, 1209-10 (1989) (citing § 388); Herleman v. Trumbauer Auto Sales, 346 Pa.Super 494, 497-98, 499 A.2d 1109, 1110 (1985) (same); Trimpey Tire Sales and Service Inc. v. Stine, 266 Pa.Super. 91, 93, 403 A.2d 108, 109 (1979) (citing *248 § 395); Lambert v. PBI Industries, 244 Pa.Super. 118, 126, 366 A.2d 944, 950 (1976) (same); McKenna v. Art Pearl Works, Inc., 225 Pa.Super. 362, 367-68 n. 3, 310 A.2d 677, 680 n. 3 (1973) (citing §§ 388, 392); Ostrowski v. Crawford Door Sales Co. of Scranton, 207 Pa.Super. 424, 429-30, 217 A.2d 758, 761 (1966) (citing § 388); Labick v. Vicker, 200 Pa.Super. 111, 116-18, 186 A.2d 874, 877-78 (1962) (citing §§ 388, 392). The difficulty in determining the nature of the instant complaint lies in the fact that in the "failure to warn" context, the theories of strict liability (in proving the product defective) and negligence (in proving the seller acted unreasonably), appear to overlap. As expressed by a recent panel of this Court, Remy v. Michael D's Carpet Outlets, 391 Pa.Super. 436, 445-446, 571 A.2d 446, 451 (1990) (per Wieand, J.) (quoting W. Keeton, The Meaning of Defect in Products Liability Law A Review of Basic Principles, 45 Mo.L.Rev 579, 586-587 (1980)); see also Ellis v. Chicago Bridge &amp; Iron Co., 376 Pa.Super. 220, 232-33, 545 A.2d 906, 912-13 (1988); Dambacher by Dambacher v. Mallis, 336 Pa.Super. 22, 65-90, 485 A.2d 408, 430-443 (1984) (Wieand, J., dissenting); Gallagher, Rise of the Phoenix, 16 Toledo Law Review 1053, 1074 (1985). In light of the virtually inextricable relationship between the torts, one panel of this Court has even declared that for the purposes of the collateral estoppel issue identity requirement, an allegation of a failure to warn can be construed under both the principles of negligent conduct and defective product strict liability so as to give a finding on one theory collateral estoppel effect. Day v. Volkswagenwork v. Aktiengesellschaft, 318 Pa.Super. 225, 237-38, 464 A.2d 1313, 1319 (1983) (holding that federal ruling that as a matter of law there was "no liability for a failure to warn" precluded relitigation in the state court under either the theories of strict liability under § 402A or negligence). Similarly, prior to Berkebile, our Supreme Court rejected a claim that a new cause of action for product liability/failure to warn had been injected into a negligence/failure to warn suit after the statute of limitations period for the strict liability had expired, and explained: Kuisis v. Baldwin-Lima-Hamilton Corporation, 457 Pa. 321, 325, 319 A.2d 914, 918 (1974). Nonetheless, whatever similarities may be said to exist in practice, the "`Pennsylvania Supreme Court, perhaps more than any other state appellate court in the nation, has been emphatic in divorcing negligence concepts from product liability doctrine.'" Remy v. Michael D's Carpet Outlets, supra, 571 A.2d at 452 (quoting Staymates v. ITT Holub Industries, 364 Pa.Super. 37, 45, 527 A.2d 140, 144 (1987)).[7] This Court has previously held, after observing, inter alia, our Supreme Court's reluctance to apply theories of contributory negligence to actions based on strict liability in McCown v. International Harvester Co., 463 Pa. 13, 342 A.2d 381 (1975), Staymates v. ITT Holub Industries, supra, 527 A.2d at 143 (quoting Bike v. American Motors Corp., 101 F.R.D. 77, 80 (E.D.Pa. 1984)). Several courts have attributed our Supreme Court's strict segregation of thought as grounded in the traditional view that strict liability is "product-oriented" while negligence is "conduct-oriented." See Sherk v. Daisy-Heddon, etc., 498 *251 Pa. 594, 613, 450 A.2d 615, 625 (1982) (Larsen, J., dissenting); Kuisis v. Baldwin-Lima-Hamilton Corp., supra, 319 A.2d at 918 &amp; n. 8 (citing Saracina v. Cotoia, 417 Pa. 80, 85, 208 A.2d 764, 767 (1965); Polk v. Western Bedding Co., 145 Pa.Super. 142, 147, 20 A.2d 845, 847 (1941)); Snyder v. City of Philadelphia, supra, 564 A.2d at 1039 n. 5 (citing Freund v. Cellofilm Properties, Inc., 87 N.J. 229, 432 A.2d 925 (1981); cf. Gallagher, supra, at 1074. Regardless of motivation or analytical justification, the fact remains that Pennsylvania courts consistently analyze the negligence/failure to warn and strict liability/failure to warn causes of action separately, treating conduct-related counts apart from product-related counts. See Wenrick v. Schloemann-Siemag Aktiengesellschaft, 523 Pa. 1, 564 A.2d 1244 (1989); Baldino v. Castagna, 505 Pa. 239, 478 A.2d 807 (1984); Incollingo v. Ewing, 444 Pa. 263, 282 A.2d 206 (1971); Toth v. Economy Forms Corp., supra, 571 A.2d 420; Smith v. Linn, 386 Pa.Super. 392, 563 A.2d 123 (1989); Ellis v. Chicago Bridge &amp; Iron Co., supra, 545 A.2d at 917; Binder v. Jones &amp; Laughlin Steel Corp., 360 Pa.Super. 39, 520 A.2d 863 (1987); Carrecter v. Colson Equipment Co., supra, 499 A.2d 326; Fravel v. Suzuki Motor Co., Ltd., supra, 486 A.2d 498; Dambacher by Dambacher v. Mallis, supra, 485 A.2d 408; Pegg v. General Motors Corp., supra, 391 A.2d 1074. Accordingly, we find that where, as here, a claim is brought under the auspices of a "negligent failure to warn," it is appropriate to view the complaint as one charging improper conduct, and not one of making a defective product, despite arguable similarities between such claims. The fact that the same facts could have given rise to a product related claim is irrelevant; nothing in our prior case law suggests that such claims must be asserted under strict liability theories rather than negligence theories. Indeed, there appears at this time to be no restriction even requiring an election between theories; rather, both may be pursued in a single suit. See Sherk v. Daisy-Heddon, etc., 285 Pa.Super. 320, 334-35, 427 A.2d 657, 663-64 (1981), *252 reversed on other grounds, 498 Pa. 594, 450 A.2d 615 (1982) (plaintiff may choose to sue under either theory); Pa.R.Civ.P. 1020(a). Having previously determined that the "Products Hazard" exclusion in the instant policy precludes coverage of claims alleging as the cause in fact of injuries a product, not a service, and having previously determined that the instant claim alleges as the cause in fact of the injuries conduct, not a product, we find the "Products Hazard" exclusion inapplicable herein. The broad declaration of coverage clearly provides for coverage of claims which are not excluded, and thus we hold that Harford will have to cover the instant claim if it is successfully maintained. We note that in other jurisdictions, not bound by our Supreme Court's "emphatic divorce of negligence and strict liability concepts," several courts have nonetheless found that the "Products Hazard" exclusion does not apply to "failure to warn" claims. For example, in Chancler v. American Hardware Mut. Ins. Co., 109 Idaho 841, 712 P.2d 542 (1985), the Supreme Court of Idaho overruled a lower court's decision that the exclusion was applicable to a claim alleging failure to provide information about maximum weight loads for a crane.[8] The Idaho Supreme Court explained: Id., 712 P.2d at 547-48; see also Scarborough v. Northern Assur. Co. of America, 718 F.2d 130 (5th Cir. 1983) ("Products Hazard" exclusion not applicable where complaint alleged negligent failure to warn of dangers associated with the use of sand during sandblasting operations) (relying on Cooling v. United States Fid. &amp; Guar. Co., supra, 269 So.2d 294). Thus, other courts have found that the "Products Hazard" exclusion is simply too ambiguous to preclude coverage of a "negligence/failure to warn claim." Essentially, such holdings represent the view that "failure to warn" claims fall within an ambiguous boarder region wherein "product liability/failure to warn" claims and "negligence/failure to warn" claims overlap, and that for an insurance company to exclude coverage of this special class of actions, it must do so explicitly. This position is perhaps best expressed by the Louisiana Court of Appeals, in one of the earliest and most often quoted cases in this area: Cooling, supra, 269 So. 2d at 297-98. (Emphasis added). We agree with this analysis. As this Court has previously explained: Techalloy Co. v. Reliance Ins. Co., supra, 487 A.2d at 824. While we find that the instant exclusion clearly precludes claims which allege the product was defective for failing to include instructions or warnings, the best that can be said for this exclusion with regard to negligent failure to warn claims is that reasonable men could differ as to its proper scope. See Loomer v. M.R.T. Flying Service, Inc., supra, 558 A.2d at 105. To hold in favor of Harford, here, would require this Court to find that a failure to warn negligence claim, which ostensibly asserts negligence in failing to reasonably instruct or warn, is essentially a product liability claim for failure to properly manufacture (with necessary warnings) and was intended to be excluded by the Products Hazard exclusion. The problem for Harford is that failure to warn claims are not essentially negligence claims or essentially *255 product liability claims. Rather, they are essentially both and fall in a region of analytical overlap between two commonly distinct theories of liability. As the drafter of the contract, it was incumbent upon Harford to expressly include that region of overlap in the exclusion if that was its intent. Insurance companies may avoid exposure to "failure to warn negligence" liability by unequivocally including such claims within a redrafted "Products Hazard" exclusion. The instant policy does not unequivocally provide to the insured any indication that such a claim would not be covered. Accordingly, we must hold against the insurance company as drafter of the provision. See Standard Venetian Blind, supra, 469 A.2d at 566. For the foregoing reasons, we find that the trial court was correct in holding that as a matter of law, the "Products Hazard" exclusion contained in the policy the Moorheads purchased from Harford does not apply. Consequently, Harford would be obligated to cover any judgment entered against the Moorheads should the underlying suit be successfully maintained. Accordingly, we hold Harford owes the Moorheads a duty to defend them in that suit. Order AFFIRMED. DEL SOLE, J., concurs in the result. [1] Restatement (Second) of Tort § 402A provides: "(1) One who sells any product in a defective condition unreasonably dangerous to the user or consumer or to his property is subject to liability for physical harm thereby caused to the ultimate user or consumer, or to his property, if (a) the seller is engaged in the business of selling such a product, and (b) it is expected to and does reach the user or consumer without substantial change in the condition in which it is sold. (2) The rule stated in Subsection (1) applies although (a) the seller has exercised all possible care in the preparation and sale of his product, and (b) the user or consumer has not brought the product from or entered into any contractual relation with the seller." Restatement (Second) of Torts, § 402A (1965). [2] § 388 Chattel Known to be Dangerous for Intended Use One who supplies directly or through a third person a chattel for another to use is subject to liability to those whom the supplier should expect to use the chattel with the consent of the other or to be endangered by its probable use, for physical harm caused by the use of the chattel in the manner for which and by a person for whose use it is supplied, if the supplier (a) knows or has reason to know that the chattel is or is likely to be dangerous for the use for which it is supplied, and (b) has no reason to believe that those for whose use the chattel is supplied will realize its dangerous condition, and (c) fails to exercise reasonable care to inform them of its dangerous condition or of the facts which make it likely to be dangerous. (Emphasis added). [3] § 392. Chattel Dangerous for Intended Use One who supplies to another, directly or through a third person, a chattel to be used for the supplier's business purposes is subject to liability to those for whose use the chattel is supplied, or to those whom he should expect to be endangered by its probable use, for physical harm caused by the use of the chattel in the manner for which and by persons for whose use the chattel is supplied (a) if the supplier fails to exercise reasonable care to make the chattel safe for the use for which it is supplied, or (b) if he fails to exercise reasonable care to discover its dangerous condition or character, and to inform those whom he should expect to use it. (Emphasis added). [4] § 394. Chattel Known to be Dangerous The manufacturer of a chattel which he knows or has reason to know to be, or to be likely to be, dangerous for use is subject to the liability of a supplier of chattels with such knowledge. [5] § 395. Negligent Manufacture of Chattel Dangerous Unless Carefully Made A manufacturer who fails to exercise reasonable care in the manufacture of a chattel which, unless carefully made, he should recognize as involving an unreasonable risk of causing physical harm to those who use it for a purpose for which the manufacturer should expect it to be used and to those whom he should expect to be endangered by its probable use, is subject to liability for physical harm caused to them by its lawful use in a manner and for a purpose for which it is supplied. (Emphasis added). [6] § 398. Chattel Made Under Dangerous Plan or Design A manufacturer of a chattel made under a plan or design which makes it dangerous for the use for which it is manufactured is subject to liability to others whom he should expect to use the chattel or to be endangered by its probable use for physical harm caused by his failure to exercise reasonable care in the adoption of a safe plan or design. (Emphasis added). [7] See also Conti v. Ford Motor Co., 578 F. Supp. 1429, 1434 (E.D.Pa. 1983). [8] Relying on Inductotherm Corp. v. New Jersey Manufacturers Casualty Insurance Co., 83 N.J.Super. 464, 200 A.2d 358 (N.J.Law.Div. 1964) (where "service" consists only of furnishing information about a product and its limitations, similar "Products Hazard" exclusion applies) (expressly not followed by Eastcoast Equipment v. Maryland Casualty Co., supra, 218 A.2d 91), the lower court in Chancler determined that such an allegation did not claim as the cause in fact of the injuries a "service" distinguishable from the product. Chancler v. American Hardware Mut. Ins. Co., 107 Idaho 953, 955, 694 P.2d 1301, 1303 (1985) (citing Friestad, supra).