While working on the construction of a new exhibit at the Zoological Society of Buffalo, an employee of CarvedRock, LLC fell and sustained injuries, resulting in a lawsuit against the Zoo, Zoological Society of Buffalo v. CarvedRock, LLC, et. al.

CarvedRock was a subcontractor retained by the general contractor, Manning Squires Henning. Pursuant to the terms of the subcontract, CarvedRock was required to obtain CGL coverage naming both Manning and the Zoo as additional insureds.  Burlington Insurance Company issued a policy to CarvedRock with an additional insured endorsement stating that coverage was afforded for “any … organization with whom [CarvedRock] ha[s] agreed, in a written contract.”  The Zoo itself sought coverage, but Burlington disclaimed coverage to the Zoo because it did not directly contract with CarvedRock.

While the Zoo focused on the fact that there was a “written contract” under which CarvedRock agreed to name it an additional insured, the Court held that the clause could not be read in isolation.  Additional insureds only included organizations “with whom” CarvedRock had entered into “a written contract.”  The Court found that the Zoo was not an organization “with whom” CarvedRock had entered into a contract — CarvedRock’s contract was with Manning. Therefore, reading the provision as a whole, the Court held that Burlington properly disclaimed coverage.

Thanks to Steve Kaye for his contribution to this post.  Please write to Mike Bono for more information.