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Cecil Usher owned Belize NY, Inc. (Belize), a small construction company doing business in New York City. Belize purchased a commercial general liability insurance policy from Mount Vernon Fire

Cecil Usher owned Belize NY, Inc. (Belize), a small construction company doing business in New York City. Belize purchased a commercial general liability insurance policy from Mount Vernon Fire Insurance Co. The policy's first page, entitled "Policy Declarations," describes the insured as "Belize N.Y., Inc."; it classifies the "Form of Business" as "Corporation," the "Business Description" as "Carpentry," and indicates that Belize was afforded commercial liability insurance in the amount of $1,000,000 per occurrence and $2,000,000 in the aggregate for the period June 1, 1995, to June 1, 1996. Two classifications are listed under "Premium Computation" on the Declarations page: "Carpentry—Interior—001" and "Carpentry—001." The policy makes no further mention of these two terms. Belize performed some $60,000 of demolition work on the United House of Prayer's renovation project on 272 West 125th Street in New York City. Belize was thereafter hired to supervise subcontractors working on the job. During that period of time, a person entered the building, shot several people with a firearm, and started a fire. Seven people died and several others were injured. The estates of the victims sued Belize, Inc., for "negligence, carelessness and recklessness" regarding the fire, and Belize notified Mount Vernon of the lawsuit. Mount Vernon refused to defend or indemnify Belize because Belize was not engaging in its carpentry operations in the building at the time of the incident. It asserted that its risk is limited to carpentry operations in accordance with the classifications set forth in the policy. Belize contended that the language of the policy did not provide that the classification "Carpentry" defined covered risks, and exclusions should have been stated in the contract. Decide. [ Mount Vernon Fire Insurance Co. v. Belize NY, Inc., 227 F.3d 232 (2d Cir.)]

Aug 14 2021 View more View Less

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