The Supreme Court of New Jersey affirmed that an insurer is not obligated to defend an insured when none of the claims against that insured could lead to coverage. The case is Rodriguez v. Shelbourne Spring, LLC, 2024 N.J. LEXIS 1173 (N.J. 2024).

Dionicio Rodriguez sought workers compensation benefits after he was injured at work. His employer, SIR Electric LLC, had a combination Workers Compensation (Part 1) and Employer’s Liability (Part 2) policy that had been issued by Hartford Underwriters. Rodriguez also filed a personal injury suit against SIR, alleging his injuries had been the result of SIR’s negligence, recklessness, and even intentional wrongdoing.

Hartford paid Rodriguez’s workers compensation claim, which was covered under the first part of SIR’s policy. The insurer refused to defend SIR against any of Rodriguez’s claims, asserting there was no coverage available for SIR because the first part of the policy was inapplicable to claims outside the scope of workers compensation, and the second part did not cover intentional actions. Soon after, SIR sued Hartford for wrongful denial of a claim. SIR did not dispute the nature of Rodriguez’s claims, but the company argued Rodriguez had also alleged non-intentional conduct that required Hartford to provide a defense. Hartford moved, and SIR cross-moved, for summary judgment.