It’s All In the Execution: Court Finds No Additional Insured Coverage Where Additional Insured Did Not Sign Contract Prior to Occurrence

City of New York v. Lexington Ins. Co. (Sup. Ct., NY County June 15, 2015)

The trial court decided that the City of New York was not entitled to additional insured status under an insurance policy issued to a parking garage company. The additional insured endorsement provided coverage to a person or organization whom the named insured was required to name as an additional insured pursuant to a written contract or agreement that was both: (1) in effect during the policy period; and (2) executed prior to the occurrence. The contract in question had been signed by the named insured prior to the underlying slip and fall accident; however, the city had not signed the contract. Thus, the insurer argued that the contract was not executed prior to the “occurrence” and, consequently, the city was not entitled to additional insured coverage. Although there was a prior contract between the named insured and the city, that contract expired prior to the policy period. Thus, the court found in favor of the insurer that the city did not qualify as an additional insured because the contract in effect during the policy period was not executed prior to the underlying “occurrence”.