Priority of coverage disputes can arise where different insurers for different insureds cover the same claim.Generally, competing insurers will compare the Other Insurance clauses of their policies to decide who should cover the claim first.
On 5 October 2021, a three-judge panel of the United States Court of Appeals for the Second Circuit unanimously held that, under New York law, the indemnity agreement in a contract.
Second Circuit held under NY law, the indemnity agreement in a contract between a contractor and subcontractor governs the priority of coverage for the contractor as an additional insured on the subcontractor’s commercial general liability policy, not clause of the policy.