Md. Federal Judge Orders Insurer to Defend Fire Protection Co. Against Negligence Claims

GREENBELT, Md. — A Maryland federal judge has ordered Everest Indemnity Insurance Co. to defend a fire protection company against a lawsuit accusing it of negligently failing to properly install a system in a Washington, D.C., condominium unit, ruling the policy exclusions only partially bar coverage.

In a March 21 order, Judge George J. Hazel of the U.S. District Court for the District of Maryland further found the “impaired property” exclusion conflicts with the policy’s Errors and Omissions Endorsement and therefore should be read in the policyholder’s favor.

Bayside Fire Protection LLC was sued by the owners of a condominium …