Property Liability Vs Property Insurance

1780 Words 8 Pages
Fundamentally, property insurance claims are critically distinguishable from liability claims in that property insurance is generally intended only to encompass first-party claims. See Parks Real Estate Purchasing Group v. St. Paul Fire & Marine Ins. Co., 472 F.3d 33, 41 (2006) (citing 2 Ostrager & Newman, Insurance Coverage Disputes § 21.01[a], at 1303 (13th ed. 2006)). This is so, because the subject of a property coverage property is a thing, whereas the subject of a liability policy is a person. Stated differently, as a technical matter of semantics it may be a non sequitur to refer to property claims as “first-or-third party” claims because—contrary to liability policies, where coverage is affixed to a person or “party”—coverage is affixed …show more content…
To be sure, the insured has no ownership interest in the property interest of her clients. Nevertheless, the insurance policy at issue provides that “[p]roperty of others that is in your care, custody or control” is covered. Accordingly, in order to be covered the property must be both: 1) property in which the insured has “an actual, lawful, and substantial economic interest”; and 2) property that is within the “care, custody and control” of the insured. In this matter, it is likely that both of these elements are satisfied, and thus, the property of the insured’s clients constitutes “Business Personal Property” under the …show more content…
The very terms of the endorsement illustrate that if its intent was to supersede policy exclusions, it could have employed terms to accomplish that purpose—as it did with regard to the Damage to Property exclusion under the Section II – Liability portion of the policy. Rather, to the extent that this endorsement does arguably apply to Section I – Property claims, it does not change the fact that this cause of loss is attributable to the excluded cause of dishonesty. Accordingly, there is no coverage under the Section I – Property part of the

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