Sharp Co. manufactures table saws. Sharp has a contractwith Home Depot whereby Home Depot agrees to sell Sharp table saws.There is an insuring requirement in the contract that runs to HomeDepot’s favor, i.e., Home Depot is an additional insured underSharp’s CGL policy issued by Iowa Casualty per a Vendor’sEndorsement. It provides coverage to Home Depot for liabilityarising from the sale and/or use of Sharp’s products.

A customer suffers injury using a Sharp table sawpurchased at a Home Depot. He sues Home Depot and Sharpalleging each is strictly liable to him for his injury becausethere was a product defect with the table saw.

answer in terms of the CGL Policy

1. Assume Home Depot has its own CGL Policy with MunichInsurance Co. with a $1M policy limit. Which insurer, Iowa Casualtyor Munich, is primary, i.e., has a duty to defend Home Depot?Why?

2. Assume each CGL policy has a liability limit of$1M.

- How much insurance is available to pay any judgmentthat may be entered against Sharp if Sharp is found 100% at faultfor the customer’s injury?

- How much insurance is available to Home Depot to payany judgment if Home Depot is found 100% at fault for thecustomer’s injury?