Wade Clark Mulcahy LLP

<p style="text-align: justify;">In <a href="https://www.wcmlaw.com/wp-content/uploads/2021/08/Gemini.pdf"><em>Gemini Insurance Company v. Certain Underwriters at Lloyd's, et al. </em></a>New York County Supreme Court examined whether a general contractor was entitled to additional insured coverage from a plaintiff's employer, who was a third-party defendant in the underlying personal injury action.</p>
<p style="text-align: justify;">Hernandez, an employee of Source, was injured while working at a jobsite.   Hernandez sued CM (general contractor) and Aventis (project owner).   A declaratory judgment action ensued, where plaintiff Gemini (CM's insurer) sought a declaration that Lloyd's (Source's insurer) owed additional insured coverage to CM.</p>
<p style="text-align: justify;"><span>The court denied Gemini's motion finding plaintiff did not establish all conditions to qualify as additional insureds were satisfied as Hernandez's complaint did not allege his injuries were caused in whole or part by acts or omissions of Source.   </span></p>
<p style="text-align: justify;">Notably, Source's policy with Lloyd's designates additional insureds “only with respect to liability for ‘bodily injury’…caused, in whole or in part by: 1. [Source's] acts or omissions, or 2. The acts or omissions of those acting on [Source's] behalf.” (NYSCEF No. 43 at 47.) And Gemini failed to establish, either through pleadings or discovery, that Source's acts or omissions caused Hernandez's injury.</p>
<p style="text-align: justify;">This decision comes down to the wording of the contract between Source and CM, in conjunction with the Source policy language.  The policy calls for AI coverage for body injury stemming from Source's acts or omissions -- which Gemini failed to establish.   Now, had the policy language called for AI coverage for all liabilities "arising out of" Source's work, the Court's decision may have been different.</p>
<p style="text-align: justify;">Please email <a href="mailto:bgibbons@wcmlaw.com">Brian Gibbons</a> with any questions.</p>