Insurance – Duty to Defend – Commercial Lines Policy – Separation of InsuredsUniversal Insurance Co. v. Burton Farm Development Co. In an underlying lawsuit, a subcontractor alleges that the defendant-developer’s project manager defamed the subcontractor and intentionally caused a breakdown of the contractual relationship between the subcontractor and the developer. Even though the project manager’s commercial lines insurance policy – which names the developer as an additional insured — contains an exclusion for injury “done by or at the direction of the insured with knowledge of its falsity,” since the policy treats each insured separately, the insurer is required to defend the developer against the subcontractor’s claims against it.
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Published: November 4, 2011
Time posted: 3:30 pm
Tags: Commercial Lines Policy, Duty to Defend, Insurance, Separation of Insureds