Insurer Must Cover KSI Warehouse Fire: 3rd Circ.

Law360, New York (April 16, 2009, 12:00 AM EDT) -- A federal appeals court has ruled that Royal Insurance Co. of America must indemnify auto parts distributor KSI Trading Corp. for $2.5 million in losses it suffered from a warehouse fire instead of the $769,000 the insurer offered to pay, finding that an ambiguity in KSI's insurance policy works in KSI's favor.

Judge D. Michael Fisher, writing for a three-judge panel of the U.S. Court of Appeals for the Third Circuit, ruled in an opinion Thursday that Royal Insurance must pay the maximum coverage under the...
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