Manufacturer’s Corner: Breach of Warranty Claims and CGL Coverage
Although, typically, a commercial general liability insurance policy doesn’t cover breaches of contract, there are exceptions to that rule, and according to one recent decision those exceptions include breach of warranty claims, according to an article published by Spencer Fane Britt & Browne.
In Continental Cas. Co. v. Greater Omaha Packing Co., Inc., a wholesaler sued its supplier, asserting claims for breach of contract, breach of express warranty (premised on the product guarantee), and breach of the implied warranties of merchantability and fitness for particular purpose.
The court found that the contractual liability exclusion didn’t apply and, even if it did, the exception to the exclusion applied.
