In Amerisure v. Selective, the Second Circuit held that the subcontract terms governed the additional insured question while the other insurance clauses in the insurance policies governed the priority dispute.
While Florida hurricanes are not unusual, this storm created claims complexities because of new statutory reforms, homeowners without flood insurance, and supply chain and worker shortages.
"A plain reading of the policy provides that the parties intended to exclude coverage for COVID-19 related losses like the losses plaintiff allegedly suffered in the immediate case," the court said.
"The majority's failure to recognize this ambiguity will result in a financial burden on insureds of limited economic means," Justice Jorge Labarga wrote.