A Massachusetts court recently ruled in favor of insurer Lloyd’s in a dispute over a commercial property and general liability policy excluding coverage for independent contractors.
The insured, a property development firm called Cable Mills LLC, and its insurance agency argued that the exclusion shouldn’t apply in its case involving a injured subcontractor who worked at the construction site and later filed a personal injury lawsuit against Cable Mills.
Cable Mills argued that because the injured worker was retained by a contractor and not directly by Cable Mills, the independent contractor exclusion isn’t applicable and that Lloyd’s is obligated to indemnify and defend Cable Mills in the personal injury lawsuit.
However, Appeals Court of Massachusetts in Middlesex rejected Cable Mills’ narrow definition of the independent contractor and ruled that the injured worker is subject to the coverage exclusion. The ruling, announced earlier this month, affirmed a lower court finding.
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