Do NYC Commercial Insurance Policies Cover Off-Premises Accidents?
Most commercial businesses in New York City carry some form of general liability insurance. Among other things, such policies insure against accidents that may occur on the premises of the business. For example, if you are injured in a slip-and-fall accident at a supermarket due to negligence on the part of the store’s management, the owner’s commercial general liability (CGL) policy would likely pay for accident-related damages.
Second Department: Restaurant’s “Premises” Did Not Extend to Delivery Driver Crash One Block Away
The Appellate Division, Second Department recently addressed whether a CGL policy extended to an accident caused by the employee of a policyholder who injured someone in the course of that employment but did so off-premises. The case before the court, Normile v. DB Insurance Co., Ltd., arose in the context of a restaurant delivery driver colliding with a pedestrian on a busy Brooklyn street.
The facts of the accident were fairly straightforward. The plaintiff was crossing a street when the delivery driver, riding a bicycle, crashed into her. The driver had just completed a delivery for the restaurant about one block away from its location.
The plaintiff subsequently filed a personal injury lawsuit against the restaurant in Kings County Supreme Court. The restaurant held a CGL policy issued by the defendant. The policy itself limited coverage to the restaurant’s “premises” and “operations necessary or incidental to those premises.” Based on this exclusion, the defendant determined it was not liable for any damages related to the plaintiff’s accident.
This prompted the plaintiff to file a separate lawsuit against the defendant over the interpretation of the policy. She argued that the delivery driver’s actions in returning to the restaurant was an “operation[] necessary or incidental” to the restaurant’s premises and thus covered by the CGL policy.
While a Brooklyn Supreme Court judge agreed with the plaintiff’s interpretation and granted her motion for summary judgment, the Second Department reversed in favor of the defendant. The Appellate Division concluded that “there was no premises-based connection between the incident and the covered premises, since the only connection between the incident and the premises was that the insured conducted its restaurant business at the covered premises.” The delivery driver’s activities may have been “related to the operation of the restaurant,” but was not “incidental to the premises” itself.
The Second Department emphasized that its holding was tied to the specific language of the CGL policy. The Court noted there are many CGL policies that cover losses “incidental to the business rather than the premises.” Such policies would likely cover any personal injury cases by an employee of that business, acting within the scope of their employment, regardless of where the accident occurred.
Contact a New York City Pedestrian Accident Lawyer
Reckless delivery drivers are just one of many hazards that pedestrians must contend with in New York City. If you have been injured while crossing the street due to someone else’s negligence, our New York City pedestrian accident attorneys can advise you on your right to demand compensation. Contact the Law Offices of Jaroslawicz & Jaros, PLLC, at 212-227-2780 to schedule a consultation. We serve clients throughout New York City and Long Island.
Source:
scholar.google.com/scholar_case?case=16608182134929397427