Bituminous Casualty Corp. v. Kenway Contracting, Inc.
Kentucky Supreme Court · 2008-01-24 · cited 55×
This case is an insurance coverage dispute where Bituminous Casualty Corporation (BCC) sought to deny coverage under a Commercial General Liability policy issued to Kenway Contracting, Inc., for damage caused when a Kenway employee unintentionally demolished part of a residential structure owned by the Turners while intending only to remove an attached carport. The Warren Circuit Court and the Court of Appeals held that BCC had a duty to defend and indemnify Kenway, and the Kentucky Supreme Court affirmed. The court reasoned that the damage qualified as an "occurrence" or "accident" because it was unintended from the perspective of Kenway's management, even though the employee's actions were intentional. Additionally, the business risk exclusions in the policy were found to be ambiguous under the circumstances and thus construed against the insurer to provide coverage.