Sudden cracking of a hot water heating system .
The loss to the hot water heating system is not an "additional coverage." This type of damage is covered elsewhere in the cause of loss forms under the peril of "sudden and accidental tearing apart, cracking, burning or bulging." Additional coverages include debris removal from covered perils, reasonable repairs, trees, shrubs and other plants, fire department service charges, property removed, credit card coverage, loss assessment, collapse and a few others.
Two customers are injured when a fire sweeps through the hardware store. Medical expenses cost $8,000 for one customer and $3,000 for another. A suit against the hardware store results in an award of $40,000 damages to one customer and $25,000 the other. The hardware store's CGL policy has a per occurrence limit of $50,000, medical payments of $5,000 each person and a general aggregate of $100,000. How much will the insurer pay?