The Supreme Court of Ohio ruled in favor of an insurer who had denied an insured's claim based on the water backup exclusion. The case is AKC, Inc. v. United Specialty Ins. Co., 187 N.E.3d 501 (Ohio 2021).

A sewer backed up and caused damage to a nightclub in Ohio. The nightclub owner hired an outside company, AKC, Inc., to clean up the damages. The owner also submitted a claim under its commercial property policy with United Specialty. The claim was denied based on an exclusion for water damage caused by a sewer backup. After the denial, the nightclub owner assigned its rights to AKC. 

AKC subsequently sued United Specialty for breach of contract. United Specialty moved for summary judgment based on the water backup exclusion. The trial court ruled in favor of United Specialty. AKC appealed, arguing the exclusion was ambiguous. The district appellate court reversed and found coverage based on the alleged ambiguity. United Specialty appealed.