Landlord's Homeowner's Insurance Didn't Cover Tenant's Slip-and-Fall Claim

Landlord's insurer sued landlord in federal court, seeking a declaration that the homeowner's insurance policy it issued to landlord excluded coverage for claims that landlord's tenant pursued against landlord in a slip-and-fall action pending in New York state court. The insurer also asked the court to authorize it to cease providing a courtesy defense to landlord in the state court case.   

The building was a two-family house occupied by tenants who were required to take out their trash by exiting the building and walking along the sidewalk toward the back of the building. One of the tenants claimed he slipped on black ice that had built up on the sidewalk abutting the building. Tenant had sued landlord for negligence, claiming that landlord failed to remove the ice, in violation of a duty to safely maintain the premises.

The court ruled for the insurer, finding that the policy didn't cover landlord in the separate court action by tenant against landlord. The insurer was also entitled to cease providing a defense to landlord in the action commenced by tenant. The insurance policy contained both a business pursuits exclusion covering liability for bodily injury arising out of or in connection with a "business" engaged in by landlord. A separate rental exclusion in the policy excluded from coverage liability for bodily injury arising out of the rental of any part of the premises.  

Mic Gen. Ins. Corp. v. Cabrera: Index No. 20 Civ. 4855 (PAE), 2021 US. Disc. LEXIS 237023, 2021 WL 5909975 (SDNY; 12/10/21; Engelmayer, DJ)