Liability Coverage Provisions Of The Policy Essay
For the reasons set forth in Part III (A), supra, there is no coverage under the Section I – Property part of the policy. The following, then, is an analysis as to whether State Farm is potentially obligated to cover the insured in the event that a suit is filed against the insured.
Under the insured’s businessowners policy, State Farm has a duty to defend and indemnify the insured against any “suit” seeking “property damage” to which “this insurance applies.” Accordingly, in order to fall within the coverage provisions of the policy, the following elements must be satisfied: 1) the person seeking coverage must be an insured; 2) the insured must seek defense against a suit; 3) the suit must allege “bodily injury” “property damage” or “personal and advertising injury”; and 4) the insurance must apply. In the liability section of the policy there would appear to be little dispute that Kathryn Norman is an insured.
Moreover, a “suit” is defined to include a “civil proceeding in which damages because of ‘bodily injury’ . . . to which this insurance applies is alleged.” At present, no suit has been filed against the insured for the losses sustained. Under the Section II – Liability part of the policy a suit is a condition precedent to the insurer’s obligation to either defend or indemnify the insured for liability incurred under Section II of the policy. Accordingly, at present, State Farm neither owes a duty to defend nor a duty to indemnify the…