10.18.2018

Ongoing Operations Exclusion j.(5) Bars Coverage

In two related cases, Unigard Ins. Co. v. Metro Metals Nw., Inc., 17-CV-05743-RBL (W.D. Wash. Oct. 11, 2018) and Alaska Nat’l Ins. Co. v. Metro Metals Nw., Inc., 1:17-CV-05765-RBL (W.D. Wash. Oct. 11, 2018), the federal district court held that the insurance companies’ policies did not provide coverage for the underlying claims against their mutual insureds.

 

The insureds had entered into an agreement with a port to use a dock for loading scrap metal onto ships. The dock was damaged, and the port demanded reimbursement for repairs, consistent with their agreement.  The port subsequently sued the insureds.  In separate opinions, the federal district court held that there was no coverage for the port’s underlying claims against the insureds.  It reasoned that Exclusion j.(5), the Ongoing Operations Exclusion, applied to the claims.  This exclusion bars coverage for property damage to “[t]hat particular part of real property on which you or any contractors or subcontractors working directly or indirectly on your behalf are performing operations, if the ‘property damage’ arises out of those operations[.]”  Soha & Lang, P.S., represented one of the insurance companies.

 

Disclaimer: The opinions expressed in this blog are those of the author and do not necessarily reflect those of Soha and Lang, P.S. or its clients.

Posted by Geoff Bedell