The United States District Court for the District of New Jersey granted a Motion for Summary Judgment made by Alexandra E. Rigney, holding that a Classification Limitation unambiguously limited coverage to the insured’s operations classified on the policy. The Court held that the insurer had no obligation to provide either defense or indemnity coverage in connection with an underlying personal injury action where the plaintiff alleged he sustained injury after slipping on ice. The insured conceded that its operations at issue in the personal injury action were snow and ice removal operations. The insured’s policy contained a Classification Limitation. The Court held that the plain language of the Classification Limitation limited coverage under policy to claims arising out of the insured’s operations that were classified on the policy, which were limited to Driveway, Parking Area or Sidewalk Paving or Repaving business. The District Court held that the plain language of the Classification Limitation renders the policy inapplicable to bodily injury claims arising out of snow or ice removal. In addition, the Court held that the insurer is entitled to reimbursement of the fees and costs it paid for the insured’s defense.
A copy of the decision can be found here:DOCS-#1681503-v2-Graham_Trucking_SJ_Decision_pdf (1)