Jenner & Block

Insurance Law Update: "New York Federal Case Distinguishes Between Multiple Insureds In Limiting Scope of Employer's Liability Exclusion"

When reviewing commercial general liability (CGL) policies for the new year, policyholders should pay particular attention to the employer’s liability exclusion.  Many policyholders are insured under CGL policies that provide coverage for multiple entities, including other named or additional insureds. Policy references to the insureds, such as distinctions between “the named insured” or “any named insured,” have led to disputes over liability coverage for claims brought by one insured’s employees against a different insured. A New York federal court’s recent ruling in Hastings Development, LLC v. Evanston Insurance Co. highlights the significance of the language used to identify insureds when it comes to preserving coverage for lawsuits brought by another insured’s employee.