CGL - Business Sued for Liability Arising out of Premises Owned Personally by Shareholder

The Big "I" Virtual University "Ask an Expert" recently responded to the following inquiry: "The named insured is a corporation. The sole stockholder personally owns a piece of land on which the corporation parks its vehicles. A pedestrian tripped on the premises and is suing the insured corporation. The location of this land was not specifically scheduled as a location on the policy. The insurer of seven years is denying the claim on the basis of misrepresentation, that the insured didn't declare the location. Is this correct?"

Although the corporate liability for injuries occurring on a personally owned premises is a separate question, the concern here was whether the insurer was obligated to defend and indeminfy the corporate insured against the claim. In response, the Big "I" noted that:

"Application information typically consists of representations, not warranties. The insured is covered for BI [Bodily Injury] and PD [Property Damage] anywhere in the 'coverage territory.' Unless the claim rep can cite an exclusion that removes this broad coverage grant, it's covered. The condition cited doesn't do anything unless the insured is being accused of fraud, misrepresentation or concealment."

"Generally speaking, premises are an underwriting and rating issue, not a coverage issue absent a designated premises exclusionary endorsement such as the CG 21 44. The 'coverage territory' is all that matters. Have the adjuster point to a specific policy provision that removes coverage."