Practice point: On the motion, the evidence will be construed in the light most favorable to the nonmovant, and the insured has the burden of showing that the contract covers the loss for which the claim is made. The applicable standard holds that the insurer has a duty to defend when (1) the allegations in the complaint in the underlying action, construed liberally, suggest a reasonable possibility of coverage, or (2) where the insurer has actual knowledge of facts establishing such a reasonable possibility. Any .contractual exclusion from coverage must be specific and clear in order to be enforced.
Case: City of New York v. Wausau Underwriters Ins. Co., NY Slip Op 08932 (1st Dep't December 29, 2016)
Here is the decision.
Tomorrow's issue: Terminating the employment of a probationary teacher.
