Alaska National Insurance Co. v. Industrial Indemnity Co.

RABINOWITZ, Justice.

This case arises from a logging accident in which an employee of Northern Timber Company (Northern) was killed. Northern was a subcontractor of Schnabel Lumber Company (Schnabel), which had contracted with the State of Alaska to log state-owned land. Schnabel’s contract with the state provided that Schnabel would indemnify the state “for any and all claims ... arising out of or connected with the exercise of the privileges granted [Schnabel] by this contract, except for injury, damages, or loss proximately caused by negligence of the State.”

Schnabel was insured by…