Opinion ID: 2756440
Heading Depth: 2
Heading Rank: 2

Heading: The CGL Insurance Policy

Text: On January 4, 2008, Northern Assurance had issued a package insurance policy to LMB and Cabot Lyman. The named insureds listed in the Declarations of the policy are Lyman Morse Boatbuilding Co., Inc. and Cabot & Heidi Lyman ATIMA. ATIMA stands for as their interests may appear. Section III of the package policy provides the insureds with Commercial General Liability (CGL) insurance. It states in relevant part as follows: Throughout this policy the words you and your refer to the Named Insured shown in the Declarations, and any other person or organization qualifying as a Named Insured under this policy. . . . . . . .
Insured becomes legally obligated to pay as damages because of bodily injury or property damage to which this insurance applies. We will have the right and duty to defend the Insured against any suit seeking those damages. However, we will have no duty to defend the insured against 2 The district court found that LMB paid or reimbursed all of Cabot Lyman's attorneys' fees. -5- any suit seeking damages for bodily injury or property damage to which this insurance does not apply. . . .
injury and property damage only if:
property damage is caused by an occurrence . . . . Property damage is defined as [p]hysical injury to tangible property, including all resulting loss of use of that property or [l]oss of use of tangible property that is not physically injured. Occurrence is defined as an accident, including continuous or repeated exposure to substantially the same general harmful conditions. 'Suit' means a civil proceeding in which damages because of . . . 'property damage' . . . to which this insurance applies are alleged, and includes [a]n arbitration proceeding in which such damages are claimed and to which the Insured must submit. Importantly, the policy excludes from coverage '[p]roperty damage' to 'your product' arising out of it or any part of it. This exclusion, common to CGL policies, is generally called the your product exclusion. Your product, in turn, a. Means: (1) Any goods or products, other than real property, manufactured, sold, handled, distributed or disposed of by:

name; or -6-
whose business or assets you have acquired; and
materials, parts or equipment furnished in connection with such goods or products. b. Includes (1) Warranties or representations made at any time with respect to the fitness, quality, durability, performance or use of your product; and (2) The providing of or failure to provide warnings or instructions.