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ASA to support subcontractor seeking clarification of wrap-up insurance coverage.(American Protection Insurance Co.)(Brief article)

Business Credit

| November 01, 2006 | COPYRIGHT 2006 National Association of Credit Management. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Imagine that two subcontractors are working on a project under a single wrap-up insurance policy and that one subcontractor damages the other's equipment. Can the subcontractor with the wrecked equipment pursue a claim of damages against the insurance company as a third-party claimant? In June, a trial court in New York decided "no" on this question in the case of KSW Mechanical Services, Inc. v. American Protection Insurance Co., but now ASA has received permission to file an amicus curiae, or "friend of the court," brief in the appeal. In the case, KSW Mechanical's equipment was damaged by another subcontractor on a project covered by an owner-controlled insurance program (OCIP). The trial court ruled that KSW ...

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