Keystone Spray Equipment, Inc. v. Regis Insurance Company

� 1 Regis Insurance Company appeals from a declaratory judgment entered in the Philadelphia County Common Pleas Court finding that Regis owed contractual duties to defend and indemnify its insured, Keystone Spray Equipment Company. The trial court so found despite provisions in the insurance policy excluding “products hazards” and “completed operations hazards” from coverage.

� 2 On April 27, 1989, the parties executed an insurance contract which provided that Keystone would pay a $6,750 annual premium, in return for which Regis would provide $300,000 of coverage per occurrence for “manufacturers’ and contractors’” liability. The contract excluded from coverage injuries suffered as a result of “completed operations hazards” and “products hazards.”

� 3 On May 3, 1989, Clyde Kennedy was injured when his hand became caught in a conveyor belt that Keystone had manufactured and installed at Kennedy’s workplace. Subsequently, Kennedy brought a products liability action against Keystone, which submitted the complaint to its insurer, Regis, for defense and possible indemnification. However, on May 1, 1992, Regis declined to defend Keystone on the ground that Kennedy’s injury fell within the “products hazard” and “completed operations hazard” exclusions, and thus was not covered by the insurance contract. Later, Keystone requested reconsideration of the claim, and Regis again denied coverage.