Question

Grace purchased a recliner from XYZ Furniture. After getting it home, she decided to try out the new chair. While leaning back, the chair broke and Grace injured her neck. She sued XYZ Furniture and was awarded $300,000. Under which limit in XYZ Furniture's CGL policy would these damages be paid?

A. General Liability Limit
B. Products-Completed Operations Limit
C. General Aggregate Limit
D. Negligence Limit

Answer 1

The damages would be paid under the Products-Completed Operations Limit in XYZ Furniture's CGL policy.

Step-by-step explanation:

The damages awarded to Grace for her injury while using the recliner would be paid under the Products-Completed Operations Limit in XYZ Furniture's CGL policy. The Products-Completed Operations Limit specifically covers damages arising from injuries caused by the products that a business sells or manufactures.