Exam DISC-IA Practice Question 806
Study guide: Exam DISC-IA
A manufacturer makes hydraulic valves that a customer installs in its packaging machines. Consider three losses under the manufacturer's CGL: (1) a batch of valves turns out to be defective, so the customer's machines run at half speed until the valves are swapped, and the customer claims its lost output; (2) the manufacturer withdraws the whole batch from the market and spends $200,000 replacing valves; (3) after a machine has been in normal use for a month, one valve suddenly bursts, shutting the customer's line for two days, and the customer claims its lost output. Which loss does Coverage A cover?
- A) Loss 1 only
- B) Loss 2 only
- C) Losses 1 and 3
- D) Loss 3 only
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