Divisive Ruling Casts Doubt On Additional Insured Coverage

Law360, New York (January 28, 2013, 9:21 PM EST) -- The Minnesota Supreme Court held Wednesday that a contractor could not force a subcontractor's insurance carrier to cover property damage during construction because the subcontractor wasn't to blame for the damage, a contentious ruling that policyholder attorneys say essentially rewrites the policy and conflicts with findings by other state courts.

Minnesota's high court ruled that a contractor named as an additional insured for liability caused by a subcontractor's "acts or omissions" could only score coverage if the subcontractor's negligence caused the damage.

In the suit, Engineering...
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