Acceptance Insurance v. Syufy Enterprises

A contractor’s employee working on the roof of a building is injured as he climbs through a hatch providing the only roof access. The hatch was negligently maintained by the building owner. In a personal injury action by the employee, is the building owner covered by an endorsement to the contractor’s commercial general liability policy making the owner an additional insured “but only with respect to liability arising out of’ the contractor’s work for the owner? Like the great majority of courts in other jurisdictions where such issues have been considered, we conclude the additional insured endorsement applies, whether the clause in question is considered ambiguous and thus construed in favor of coverage, or whether it is given the broad meaning generally accorded to the term “arising out of’ in contracts of insurance.

Acceptance Insurance Company (AIC) appeals from judgments in favor of respondents Reliance Insurance Company of Illinois (Reliance), and Syufy Enterprises and related entities (collectively, Syufy). The judgments were entered after the trial court granted summary judgment motions by Reliance and Syufy. At issue is whether Syufy is covered by the…