Thursday, June 3, 2010

Court of Appeals Addresses Duty to Defend

In Regal Constr. Corp. v National Union Fire Ins. Co. of Pittsburgh, PA, the Court of Appeals addressed the obligation of an insurer to defend and indemnify an additional insured for potential liability arising out of the operations of the primary insured. The Court held “this case is factually distinct from Worth. Here, there was a connection between the accident and Regal’s work, as the injury was sustained by Regal’s own employee while he supervised and gave instructions to a subcontractor regarding work to be performed. That the underlying complaint alleges negligence on the part of URS and not Regal is of no consequence, as URS's potential liability for LeClair's injury ‘ar[ose] out of" Regal’s operation and, thus, URS is entitled to a defense and indemnification according to the terms of the CGL policy.”

No comments:

Post a Comment