| Q&A of the Week |
Gravel Driveway
A Vermont subscriber recently asked the following question:
Regarding coverage B other structures, we need some clarification on the following: "Sometimes questions arise about the status of sidewalks, driveways, or in ground pools that appear to be connected by a concrete patio to the dwelling. These structures are not dwellings, nor are they attached to the dwelling. Concrete walks and patios are not laid so that they become 'at one' with the dwelling. Therefore, coverage B applies to these structures."
Under the ISO HO3 form are driveways covered under coverage B? The driveway in question is dirt and gravel, basically land.
ANSWER: Dirt and gravel are different than land; land is basically ground that has not been altered by humans. Merriam Webster Online defines "land" as "a: the solid part of the surface of the earth; also: a corresponding part of a celestial body (as the moon) b: ground or soil of a specified situation, nature, or quality <dry land>."
Land that is dirt and gravel has been modified by humans; the gravel is in a certain part of the land in a pattern and not just strewn about. The planning and deliberate placing of the gravel makes it another structure. |
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| Litigation Watch |
Contractor, Subcontractor, and Additional Insured Coverage
The contractor sought coverage as an additional insured under the subcontractor's general liability policy when the contractor was sued after the subcontractor was killed while working on the job site. This case is Schafer v. Paragano Custom Bldg., Inc., 2010 WL 624108 (N.J. Super. Ct. App. Div. Feb. 24, 2010).
Paragano was the general contractor for the renovation of a home and subcontracted a portion of the work to K&D Builders and Carpenters. Schafer was installing a window in a second-floor bathroom. Paragano had erected a scaffold in connection with the work, but it was not high enough to permit Schafer to complete his work. So, Schafer placed an A-frame ladder on the top of the scaffold and climbed up. While perched on the ladder and trying to fit the window into place, Schafer lost his balance and fell to his death.
Schafer's estate sued Paragano claiming that the scaffolding had been improperly erected. Paragano sought coverage under K&D's general liability policy as an additional insured. The trial court ruled in favor of coverage and the liability insurer, Harleysville Insurance Company, appealed.
The Superior Court of New Jersey, Appellate Division, noted that Paragano was made an additional insured on the Harleysville policy only with respect to liability caused in whole or in part by K&D's acts or omissions in the performance of its ongoing operations for Paragano. The court found no ambiguity in this wording. It was clear that coverage was available to Paragano as an additional insured only for liability caused in whole or in part by the acts or omissions of K&D. The policy did not provide coverage for liability caused by Paragano's own acts or omissions. In other words, Paragano had vicarious liability coverage under the Harleysville policy, not liability coverage for its own acts or omissions. |
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