Two Kentucky Supreme Court rulings handed down last week emphasize how important it can be to have clearly worded insurance policies, including exclusions and excess and escape clauses, particularly in high-dollar commercial coverage.
In Motorists Mutual Insurance Co. vs. First Specialty Insurance Corp., the high court split the difference on conflicting policies held by a contractor and an apartment complex – requiring both insurers to pay equally after a child was run over.
The decision overturned a court ruling that had been a guidepost on escape clauses for almost three decades.
“…We reverse the Court of Appeals’ opinion holding that First Specialty’s ‘other insurance’ provision was a nonstandard escape clause, overrule Haddix, and hold First Specialty’s