Deadly NYC Crane Collapse Insurance Challenged

June 13, 2012

New York’s top court says misrepresentations on insurance forms by the operator of a crane involved in a deadly collapse four years ago could also limit coverage for the developer and builder.

The accident killed seven people in midtown Manhattan

Alliance Insurance claims Joy Contractors Inc. said it specialized in drywall installation, didn’t do exterior work and did no work above the second floor except for indoor drywall. The company says that means no coverage for the nearly 200-foot-tall crane that toppled, killing six workers and a woman visiting the city in March 2008.

The Court of Appeals said Tuesday if Alliance proves that was not a valid policy for Joy, it also won’t cover “additional insureds,” including general contractor Reliance Construction and the owners and developers.

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Latest Comments

  • June 14, 2012 at 5:53 pm
    BeezKneez says:
    What's better is excess, with Admiral, has residential exclusion. Either we have insured or agent misrepresentation. In both cases, Joy goes out of business and GC and Owner/B... read more
  • June 14, 2012 at 3:34 pm
    SteveB says:
    Brian - I agree fully. The carrier should not have to pay the claim on this loss. I do my best also to drill down to the "real" truth. It's funny I just had lunch with my w... read more
  • June 14, 2012 at 2:09 pm
    Temblor says:
    This is exactly why I do not fill out any part of any professional liability (using that term broadly) application. And when I have the client sign a GL application, I give t... read more

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