NY’s First Department examines “arising out of” additional insured requirement.

The First Department overruled a Bronx trial court’s decision and dismissed the claims against the defendant insurers. The court held that the NYCHA, a would-be additional insured, was not entitled to AI coverage because the underlying claims (involving a man who was shot on the Housing Authority’s premises as a result of a faulty electromagnetic locking system) did not arise out of the work of the named insureds which had completed their work before the shooting occurred.