KHD Deutz of America Corp. v. Utica Mutual Insurance

Smith, Judge.

KHD Deutz of America Corporation appeals from the grant of summary judgment to Utica Mutual Insurance Company, Inc. in a declaratory judgment action. We must determine whether the trial court properly concluded as a matter of law that Utica’s insured under an errors and omissions policy was not entitled to coverage under the policy for failing to procure insurance for KHD.

The record reveals that under the terms of a security agreement executed in connection with a multimillion dollar loan from KHD to Prime Commercial Corporation, Prime Commercial was required to purchase…