Liability insurance policies generally have an exclusion barring coverage for claims brought by the insured’s own employees. Many times, especially in the hospitality industry, a liability insurance policy provides coverage for various different companies. A common question is whether claims brought by an employee of one insured against another insured are covered under such a policy.
In an important decision, the Second Circuit Court of Appeals recently ruled that, under New York law, an employer’s liability exclusion does not preclude coverage for claims brought by an employee of one insured against another insured. In Lodging Magazine, my colleagues Syed Ahmad, Sergio F. Oehninger, and Brittany M. Davidson discuss the significance of the Second Circuit’s ruling for companies in the hospitality industry, who are usually one of multiple insureds under a single policy and are therefore susceptible to being sued by another insured’s employees. The full post is available here.