Opinion ID: 1480749
Heading Depth: 1
Heading Rank: 1

Heading: Coverage of the Policy.

Text: This is a matter of construction of the pertinent terms of the policy and application thereof to the fact situation as to the accident. It is well to state the essential facts as to the accident in order to understand the contentions of the parties as to the meaning of the policy. The business of Roberts was the sale and installation of furniture and fixtures. His place of business was Fort Smith, Arkansas. He sold Clyde Primm a gas operated refrigerator and installed it in Primm's residence in the town of Ozark, Arkansas. The installation was completed by coupling up the refrigerator to the gas pipes in the house. During the night following the day of such installation, Primm, his wife and children were injured by gas escaping from these refrigerator connections. Shortly afterward, suit was brought for such injuries and recovery resulted. Appellant contends the policy covered only occurrences upon the business premises of Roberts in Fort Smith and occurrences happening during but not after installation elsewhere. Therefore, since this accident happened at Ozark and after the installation of the refrigerator had been completed, there was no coverage under the policy terms. Appellees contend that the policy covered results from improper installation, including improper inspection to make sure the installation was safe. Since this accident happened after the installation had been completed and the refrigerator as installed turned over for use by Primm, it is clear that there is no liability if the coverage is only for occurrences during the course of installation; while there is liability if the coverage extends to results of completed installation (including inspection). The policy consists of a printed form of Manufacturers' or Contractors' Liability Policy with insertions applicable to this insured. The form included a statement that: The insurance afforded is only with respect to such and so many of the following Coverages and divisions thereunder as are indicated by specific premium charge or charges. This was followed by a table of coverage which included, separately, bodily and property damage. The pertinent portions of that table, with insertions in this policy, are as follows: Limits of Liability Each Each Advance Coverages Division Hazards Person Accident Aggregate Premium ------------------------------------------------------------------------------- A. Bodily 1. Premises-Operations $5,000. $10,000. xxxx $12.50 Injury 2. Elevators $xxxxx $xxxxx xxxx $nil Liability 3. Independent Contractors $xxxxx $xxxxx xxxx $nil 4. Products or Completed operations $xxxxx $xxxxx xxxx $nil 5. Contractual $xxxxx $xxxxx xxxx $nil ------------------------------------------------------------------------------- This table is followed by another designed to contain information, separately, as to each of the above five Divisions in the first table. As to all except Division 1, the inserted notation is not covered. As to Division 1 there is the following: Rates PREMIUMS Premium Coverage Coverage Coverage Coverage Description Code Bases A B A B -------------------------------------------------------------------------------------------------- 1. Premises-Operations. Location of premises by street and number, town and state; and classifications of operations. 5146 8000. .14 12.50 Nil 113 No. 10th St. Fort Smith, Ark. Min. Furniture and Fixtures Installation In Offices and Stores  NOC  portable metal or wood Salesmen, Collectors & Messengers  Outside 2450 3000. .02 Clerical Office Employees NOC 2450 1000. .02 [2] ---------------------------------------------------------------------------------------------- From the above, it is clear that the only coverage was such as would come within the classification Division 1. Premises  Operations. The pertinent portion of Definition of Hazards as to Division 1 is as follows: Division 1. Premises  Operations ...... The ownership, control, maintenance or use of the premises, and all operations during the policy period which are necessary or incidental thereto. Under a heading Exclusions is the statement that This policy does not apply    (e) under divisions 1 and 3 of the Definition of Hazards, to: (1) liability with respect to which insurance is or can be afforded under division 4 of the Definition of Hazards;. Division 4 of the Definition of Hazards referred to in the just preceding quotation is as follows: Division 4. Products or Completed Operations ...... The handling or use of or the existence of any condition in goods or products manufactured, sold, handled, or distributed by the named insured, if the accident occurs after the insured has relinquished possession thereof to others and away from premises owned, rented or controlled by the insured; and the existence of any condition in premises or property, other than tools, uninstalled equipment and abandoned or unused materials, caused by operations of the named insured or his independent contractors, if the accident occurs after the completion or abandonment of such operations at the place of occurrence thereof and away from premises owned, rented or controlled by the insured. A concise summation of all of the above provisions of the policy (which are those discussed by the parties as pertinent) is as follows: the only coverage is under Division 1. Premises  Operations; the operations here intended are defined as Furniture & Fixtures Installation in Offices & Stores  NOC  portable metal or wood    Outside; the definition of hazards as to Division 1 includes all operations    necessary or incidental to use of the described premises; the exclusion from coverage (in Division 4) of the existence of any condition in premises or property, other than tools, uninstalled equipment and abandoned or unused materials, caused by operations of the named insured or his independent contractors, if the accident occurs after the completion or abandonment of such operations at the place of occurrence thereof and away from premises owned, rented or controlled by the insured. We need not determine whether installations in residences,-as distinguished from Offices & Stores,-is within the coverage. If it should be, the last-quoted provision from the excluded Division 4 clearly excludes this occurrence from coverage because it happened away from the premises; resulted from the existence of a condition in premises or property; was caused by operations of the named insured; the accident occur[ed] after the completion    of such operations at the place of occurrence thereof and away from premises owned, rented or controlled by the insured; and it was not caused by tools, uninstalled equipment and abandoned or unused materials. Appellees argue that Division 4 applies only to defects in fixtures that are installed and not to any negligence in installing them. The first clause of Division 4 covers defects in fixtures under the situation here. However, the second clause has to do with something else which is the condition in premises or property    caused by operations of the named insured and the unfortunate condition here was caused by the operation of instalment by this insured.