Duty to Defend - Named Driver Exclusion
Court Grants Judgment on Pleadings as Named Driver Exclusion Does Not Apply to Bar Coverage
Century Sur. Co. v. Marzec, 2013 U.S. Dist. LEXIS 106469 (S.D.N.Y. July 30, 2013)
The Southern District of New York holds that the insured is entitled to coverage for a personal injury suit arising out of the insured's garage operations.
The insurer of a garage operator brought suit seeking a declaration that it was not obligated to provide defense and indemnity for a personal injury suit brought against its insured. The insurer sought coverage for an accident that occurred while one of its employees struck an individual while operating a vehicle within the garage. The insurer declined coverage pursuant to the "Named Driver Exclusion." The exclusion applied to "bodily injury," "property damage," or "medical payments" associated with all incidents in which a covered automobile is driven by "any individual shown in the schedule above." The schedule did not include the employee involved in the accident.