Policy Covers Lead Paint Claims

Facts: Tenant sued landlord, claiming that her child was injured by swallowing lead-based paint chips in her apartment. Landlord, in turn, sued its insurance company, which claimed that it wasn't required to cover landlord for a lead paint injury claim. An appeals court ruled that the insurance policy didn't cover landlord because a lead paint exclusion in landlord's primary policy was incorporated into an entire umbrella policy landlord later got. Landlord then got permission to appeal to the Court of Appeals. Court: Landlord wins. The umbrella policy provided for two separate and distinct types of coverage. The second type of coverage didn't incorporate the exclusions contained in the first policy. There was no exclusion for lead paint injuries in the second type of coverage that landlord got through the umbrella policy.

110 Westview Assocs. v. Guaranty Natl. Ins. Co.: NYLJ, 10/27/00, p. 23, col. 3 (Ct. App. NY; Smith, J)