Commercial General Liability Insurance Carrier Did Not Cover Liability for Professional Services
Wimberly Allison Tong & Goo, Inc. v. Travelers Prop. Casualty Co. of Am., 559 F. Supp. 2d 504 (D.C. N.J 2008).
This case involved an architect who was sued by several parties who either sustained injuries or lost loved ones when a parking garage colapsed. Defendant, the architect, argued that its general commercial liability (GCL) insurance carrier and excess GCL insurance carrier had an obligation to defend under the architect's policy. The insurers, however, rejected the architect's claims, noting that the exclusion for liability resulting from professional services applies.
The architect's argument in support of his position that the exclusion was inapplicable was that plaintiff's causes of action for "nuisance" and "negligence" were something "other than professional services." Also, the architect stated plaintiff did not mark the "professional malpractice" when filling out the Civil Case Information Statement.
The New Jersey District Court rejected the architect's argument and found the "professional services" exclusion applicable. The court stated that the causes of action against the architect were not based on general business services, but on the particular professional services that fall under the policy exclusion. The insurance carriers had no duty to defend.
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