8.7.3 Exclusion j(6) - Property Damage for Incorrect Work Performed by the Insured

• Jurisdiction: Arizona

Exclusion j(6) does not apply to any property damage included in the product's completed operations hazard. Put another way, in order for the exclusion to apply, the insured's work had to be completed or abandoned prior to the damage. If the insured had not completed all its work when the damage occurred, then the completed operations hazard exception to the exclusion would not be applicable to prevent coverage.

It is the insured's burden of proof to demonstrate that the completed operations hazard exception to Exclusion j(6) applies. When a policy contains an exception within an exception, the insurer need not negate the internal exception; rather, the insured must now show that the exception from the exemption from liability applies.^[383] Thus, once the insurance company makes a prima facie showing that no coverage exists because Exclusion j(6) applies, the burden shifts to the insured to show that the exception to the exclusion applies, that is, the work was not abandoned or completed.

The second business risk exclusion is j(6), which provides that the policy does not cover property damage to "[t]hat particular part of any property that must be restored, repaired or replaced because 'your work' was...