American Safety Indemnity Co. v. Admiral Insurance

Opinion

BENKE, Acting P. J.

In this case, we once again apply the well-established principle that any limitation on the coverage provided by a liability insurance policy must be express and consistent with the reasonable expectations of the insured.

Here, the subject commercial general liability policy has a provision labeled “Self-insured Retention (SIR)” that clearly makes the insured liable for the first $250,000 in damages payable to any third party claimant. The policy also makes it clear the insured’s paying of defense costs counts toward meeting the insured’s SIR obligations.

However, the…