POLICY DIDN’T COVER SUBCONTRACTOR'S WORK
When WIC, an insurance company, sought a declaration from the New York County Supreme Court that it wasn’t obligated to defend its insured, SRDCSM, Inc., in a personal injury action brought by a subcontractor’s employee, relief was granted in WIC’s favor.
On appeal, the Appellate Division, First Department, noted that while the policy provided coverage for the “interior carpentry work” in question, since the activity was being performed by a subcontractor ("D"), and not the named insured (SRDCSM), the AD1 agreed that the claim fell “outside the scope of [SRDCSM’s] Policy.”
And since it wasn’t a covered event, the AD1 also didn’t think a timely disclaimer, pursuant to the state’s Insurance Law, applied.
Now there’s no disclaiming that.
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DECISION