“Arising Out Of” and “Caused By”: Different Meanings in AI Endorsements? Apparently Not.

In W&W Glass Systems v. Admiral Ins. Co., the plaintiff sought a judgment declaring that it was an additional insured under its subcontractor’s insurance policy after an employee of the subcontractor was injured during the course of his employment.  The policy provided that plaintiff was covered “only with respect to liability caused by [the subcontractor’s] ongoing operations performed for that insured [i.e. plaintiff].”  The defendant argued that the additional insured provision was not triggered because the injured employee’s accident was not “caused by” the subcontractor’s operations — that the language “caused by” means that there must be a finding of negligence.  The First Department rejected this argument, finding that the language “caused by” does not materially differ with the language “arising out of,” and that language does not require a showing of negligence. Since the injured employee was working for the subcontractor at the time of the accident, the defendant’s duty to defend was triggered.
Thanks to Gabe Darwick for his contribution to this post.