Sublimit Provision Caps Liability At $1M, 2nd Circuit Determines
Mealey's (October 20, 2015, 11:54 AM EDT) -- NEW YORK — Because there is no ambiguity in an insurance policy regarding the terms “underground storage tank” and “associated piping,” an insurer is required to pay only the policy’s $1 million sublimit of liability for underground storage tanks and associated piping, the Second Circuit U.S. Court of Appeals said Oct. 16 (Two Farms Inc. v. Greenwich Insurance Co., No. 12-50, S.D. N.Y.; 2015 U.S. App. LEXIS 17940).