San Miguel Community Assn. v. State Farm

FACTS

San Miguel, a nonprofit residential community association, is the named insured under the State Farm policy at issue in this case and Beggs is the president of San Miguel‟s board of directors. State Farm‟s policy provided San Miguel with “comprehensive business liability” coverage. Under that coverage, State Farm agreed to “pay those sums that the insured becomes legally obligated to pay as damages because of bodily injury, property damage, personal injury or advertising injury” caused by an “occurrence.” The policy defined an “occurrence” as either “an accident . . . which result[s] in bodily injury or property damage,” or “the commission of an offense, or a series of similar or related offenses, which results in personal injury or advertising injury.” And the policy defined “property damage” as: (1) “physical injury to or destruction of tangible property, including all resulting loss of use of that property . . . [; and (2)] [¶] loss of use of tangible property that is not physically injured or destroyed, provided such loss of use is caused by physical injury to or destruction of other tangible property. . . .”

3 The policy also offered optional coverage for “Directors…