Viking Automatic Sprinkler Co. v. Pacific Indemnity Co.

This is an action upon a liability insurance policy which, by endorsement, contained the following provision:

“The Company agrees to insure the Assured against loss by reason of the liability imposed by law upon the Assured for damages (including damage resulting from loss of use of property damaged or destroyed), on account of damage to or destruction of property of any description caused solely and directly as a result of an accident occurring during the effective period of this endorsement by reason of and during the progress of the business operations of the Assured, . . . ”

A major part of…