“Your Work” Exclusion Under CGL Policy Precludes Coverage Solely for Damage to Property Upon Which the Policyholder Performed Repair Services

American Home Assurance Co. v. CAT Tech LLC (5th Cir. (Tex.), Oct. 5, 2011)

In the course of servicing a hydrotreating reactor, the policyholder damaged several of the reactor’s components. In the subsequent arbitration between the policyholder and the reactor owner, the arbitrators found the insured responsible for the damage to the reactor and entered an award against it. The policyholder sought indemnification from its insurers under a CGL policy and a commercial umbrella policy and the insurers moved for summary judgment, contending that the “your work” exclusion found in both policies precluded coverage. The federal appellate court held that summary judgment was inappropriate because the “your work” exclusion only precluded coverage for damage to that portion of the property upon which the insured performed repair services but it did not preclude coverage for any damage to the property that the insured did not repair or service.