Siegman

Leo Siegman, a wholesale diamond merchant, carried robbery insurance with Orion Insurance Company, Ltd., (Orion) which covered 80 percent of outside robbery losses but did. not cover any part of inside robbery losses. During the life of the policy Siegman was robbed of diamonds valued over $72,000. Orion refused to reimburse him for the loss contending that the robbery had not occurred outside his premises and therefore his losses were not within the coverage of the policy. The trial court found that Siegman had been robbed of one diamond outside his premises and awarded him 80 percent of its value. But the court also found that the balance of the losses from the robbery took place inside Siegman’s premises, and it concluded that these losses were not covered by the policy. Siegman appeals.

The issue is whether the principal losses from the robbery occurred inside or outside Siegman’s premises within the meaning and definition of the policy. The facts are undisputed. Siegman buys and sells annually a million dollars of cut, polished diamonds. Several times a year he travels to New York to buy merchandise at the Diamond Dealers Club, but he keeps none of his stock there.…