Opinion ID: 853272
Heading Depth: 2
Heading Rank: 3

Heading: Coverage for All Sums Caused by an Occurrence

Text: The policies provide that Allstate will pay all sums which [Dana] shall be obligated to pay by reason of the liability... imposed upon [Dana] by law ... for damages because of [personal injury or property damage] ... caused by an OCCURRENCE.... The definition of occurrence, in determining coverage for liability from personal injury or property damage, is an accident, event or happening including continuous or repeated exposure to conditions which results, during the policy period, in Personal Injury [or] Property Damage ... neither expected nor intended from the standpoint of the Insured. These policies require Allstate to indemnify Dana for all sums paid as a result of liability arising from any covered accident or event resulting in property damage or personal injury that occurs during the policy period. Allstate contends it is responsible only for the portion of damages incurred in a particular policy period. It argues for a proportional allocation of damages among each triggered policy period. In the case of evolving damages, an occurrence as that term was used in the CGL policies of this era may take place over time. Cf. Eli Lilly & Co. v. Home Ins. Co., 653 F.Supp. 1, 10 (D.D.C.1984). If so, the other insurance clauses typically found in these policies may have the effect of prorating the damages among the insurers on the risk at different times in that period. Cf. Ind. Ins. Co. v. Am. Underwriters, Inc., 261 Ind. 401, 407-08, 304 N.E.2d 783, 787 (1973). However, there is no language in the coverage grant, including the definitions of property damage, personal injury, or occurrence, that limits Allstate's responsibility to indemnification for liability derived solely for that portion of damages taking place within the policy period. By the policy's terms, once an accident or event resulting in Dana's liabilityan occurrencetakes place within the policy period, Allstate must indemnify Dana for all sums Dana must pay as a result of that occurrence, subject to the policy limits. We agree with the Court of Appeals that whether or not the damaging effects of an occurrence continue beyond the end of the policy period, if coverage is triggered by an occurrence, it is triggered for all sums related to that occurrence. We reverse the trial court and direct entry of partial summary judgment on this issue for Dana.