The U.S. Court of Appeals panel held that Philadelphia Indemnity Insurance Co.'s vague refusal to cover Yeshivat Beth Hillel of Krasna under a general liability insurance policy did not comport with New York law requiring a "high degree of specificity" regarding such determinations. (Credit: Stuart Monk/Shutterstock.com)
The U.S. Court of Appeals for the Second Circuit ruled that Philadelphia Indemnity Insurance Co.'s (PHLY) vague refusal to cover a Brooklyn school under a general liability insurance policy did not comport with New York law requiring a "high degree of specificity" regarding such determinations. Subsequently, the court ordered the Pennsylvania-based insurer to indemnify Yeshivat Beth Hillel of Krasna in a lawsuit by the parents of a child who was severely injured after being hit by a bus carrying its students.
According to the ruling, Philadelphia investigated Yeshivat's claim after the child's parents, Rami and Olivia Garber, sued the school. The company then sent a "reservation of rights letter" informing Yeshivat that the policy might not cover its claim.
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Tom McParland
Tom McParland of New York Law Journal can be contacted at [email protected]. Follow him on Twitter @TMcParlandALM.
