|
All Purpose added Swank as an additional insured on its Commercial General Liability (CGL) policy when it contracted to paint the City of Libby’s water treatment plant. Painting began during one policy period and ended during the second. Soon after the job was complete, the city discovered that the paint used was the wrong kind and the work had to be redone. The city sued Swank and Swank filed a claim under All Purpose's CGL policy, but the insurance company denied the claim.
Coverage was denied based on the insured’s product exclusion. Swank argued that the CGL policy in effect when the painting began excluded only the named insured’s product. Since Swank was an additional insured, it was covered. Swank then argued that, since the renewal policy language changed to insured’s product, there had to be a difference.
The court ruled in favor of Swank.
Click here for more details on this court case.
|
