Court holds insurer is not liable for injury caused by "complete product" or to fulfill implied warranty

Auto-Owners sued its insured, Keizer Morris, Inc., and Gary Hayward, seeking a declaratory judgment that it was not liable for injuries Hayward suffered due to a defective product produced by Keizer Morris.  The Court of Appeals did not explain either the injury suffered or the nature of the alleged defect, simply stating that Hayward was injured in "an explosion of an 'asphalt hot box reclaimer'."  It also did not explain the manner in which Hayward argued that the reclaimer failed to comport with an implied warranty of fitness for the intended purpose. 

The holding was limited to the fact that AutoOwners was not obligated to defend Keizer-Morris or to indemnify Hayward for his injuries, because an exclusion in the coverage section of the AutoOwners policy made the policy inapplicable to injuries caused by "completed operations."