Hartford Fire Insurance Company v. St. Paul Surplus Lines Insurance Company

POSNER, Circuit Judge.

This diversity suit, governed all agree by California law, involves a dispute between two insurance companies over the scope and applicability of the form of insurance known as a “vendor’s endorsement.” A manufacturer will often add to its products liability insurance an endorsement extending coverage to distributors of its product who may be sued for breach of warranty or for strict products liability should the product turn out to be defective or unreasonably dangerous and cause an injury. “When a manufacturer produces a product which contains a defect in design or one…