Universal Fire & Casualty Insurance Co., an Indiana Company v. Mark Jabin and Lelia Jabin

KANNE, Circuit Judge.

In 1986, Mark and Lelia Jabin hired Jerri Neal, doing business as Janeo Realty & Management, to manage several commercial properties the Jabins owned. One of these properties was 218 S. Homan in Chicago. In the management agreement, the Jabins gave Neal authority “[t]o carry, at [the Jabins’] expense, public liability and workmen’s compensation insurance adequate to protect the interests of the parties hereto.... ”

On August 8,1989, Universal Fire & Casualty Insurance Company (“Universal”) issued the Jabins a one year, $500,000 commercial liability policy on their…