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America First Credit Union v. Kier Construction Corporation, 2013 UT App 256 (October 24, 2013) 

Oct 24, 2013

The Utah Court of Appeals held that a general contractor could not turn to its stone veneer subcontractor’s commercial general liability policy for coverage in a lawsuit brought against the general contractor by the owner for the subcontractor’s allegedly defective work. America First, 2013 UT App 256, ¶ ¶ 17 – 19. The ruling hinged upon the policy’s definition of “your.” Id. ¶ ¶ 9 – 10. The policy limited the definition of “your” to the “Named Insured.” Id. ¶ ¶ 10, 18 – 19. The subcontractor was the only named insured in the policy; the general contractor had been added to the policy as an “Additional Insured.” Id. Therefore, the exclusions for “your work” and “your product” were exclusions for the subcontractor’s work, and the exclusions applied to bar coverage. Id. As to the general contractor’s argument that the subcontractor was required by its contract with the general contractor to provide insurance coverage for its defective work, the general contractor’s remedy would be to bring a claim for breach of contract against the subcontractor. Id. ¶ 19.