Eleventh Circuit Upholds Decision Finding Commercial Policy Unambiguously Limits Coverage To Premises In The List Of Scheduled Properties

The Eleventh Circuit Court of Appeals recently held that an insurer had no duty to defend an apartment complex in a case involving a shooting at a property not on the policy’s list of scheduled properties. United Specialty Ins. Co. v. Tzadik Acquisitions, LLC, No. 20-13853, 2021 WL 2309881 (11th Cir. Jun 7, 2021).

A fatal shooting occurred at an apartment complex owned and operated by the insured. Its commercial liability policy identified 45 properties owned and operated by the insured, which contained a schedule of all premises owned, rented or occupied by the insured and was subject to a Designated Locations General Aggregate Limit Endorsement. The apartment complex where the shooting occurred was not included (nor had it ever been included) in the policy schedule. The insurer denied coverage and filed a declaratory judgment action to determine that it had no duty to defend or indemnify. The district court granted summary judgment in favor of the insurer.

The Eleventh Circuit affirmed, finding that the parties clearly intended to limit coverage to the scheduled properties given the application and that the policy specifically listed the 45 properties, as well as a “classification and premium” table. The Eleventh Circuit determined that the policy’s broad definition of coverage territory could not be read in isolation but rather had to be read with the rest of the policy and the application to construe the policy as a whole. The Eleventh Circuit concluded that “a list of scheduled properties may unambiguously limit a policy’s application despite language elsewhere in the agreement that would broaden coverage if read in isolation.”