Pennsylvania Federal Court Reinforces The Principle That Liability Policies Insure Against Legal Obligations Owed To Others

Defense and indemnity obligations owed under liability policies depend on the allegations made in the underlying lawsuit. In NVR, Inc. v. Motorists Mut. Ins. Co., 2019 WL 989393 (W.D. Pa. Mar. 1, 2019), NVR, an additional insured under a CGL policy sought coverage for two lawsuits that arose out of a heater explosion at a construction site. NVR was the defendant in personal injury litigation. In a separate lawsuit, NVR sought recovery for property damage that it incurred due to the explosion. The personal injury lawsuit …

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One at a Time! Anti-Stacking Provision Upheld

The Eighth Circuit Court of Appeals denied appellants’ attempts to classify the language of an anti-stacking provision ambiguous in Gohagen v. The Cincinnati Ins. Co., (8th Cir., January 6, 2016).

The plaintiff was severely injured by a tree being removed by the policyholder.  He reached a settlement with the policyholder, which included the insurer’s payment of $1,000,000; that figure represented the per-occurrence limit under the commercial general liability policy (CGL). The policyholder also had a business owners package (BOP) with a $1,000,000 per-occurrence …

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