Opinion ID: 2301146
Heading Depth: 1
Heading Rank: 2

Heading: The Pertinent Provisions of the Insurance Policy

Text: 1. The Additional Insured Endorsement It is undisputed that, before the occurrence of the serious automobile accident in South Boston in August of 2001, United National had issued an insurance policy, by the terms of which Cheaters was the named insured and the Holding Corp. was named (by means of an Additional Insured Endorsement) as an additional insured. It is noteworthy that the Additional Insured Endorsement pursuant to which the Holding Corp. became an additional insured reads in pertinent part as follows: The naming of an additional insured will not increase our limit of liability. 2. The Insured Contract Exclusion The United National policy issued to Cheaters contains an exclusion for contractual liability. However, the policy goes on to state that the exclusion with respect to contractual liability does not apply to liability for damages    [a]ssumed in a contract or agreement that is an `insured contract,'   . (Emphasis added.) The United National policy defines an insured contract as meaning: That part of any other contract or agreement pertaining to your business    under which you assume the tort liability of another party to pay for `bodily injury' or `property damage' to a third person or organization. The policy then defines [t]ort liability as meaning a liability that would be imposed by law in the absence of any contract or agreement. At all relevant times, the Holding Corp. had a contractual agreement to furnish equipment and certain trade fixtures or improvements to Cheaters at the 245 Aliens Avenue premises in Providence. As part of that contract, Cheaters assured the Holding Corp. that it would indemnify it and defend it against any and all claims related in any way to Cheaters' activities and business performed at the premises in Providence. As we have noted, it is undisputed that the indemnification agreement between Cheaters and the Holding Corp. is part of an insured contract that falls within the definition of that term in the United National policy. 3. The On-Premises Endorsement The United National policy at issue contains an On-Premises Endorsement, which explicitly limits coverage to on-premises losses only, and it defines the premises as 245 Aliens Avenue, Providence, Rhode Island. 4. The Liquor Liability Exclusion Additionally, the policy's liquor liability exclusion states that the insurance does not provide for the following: `Bodily injury' or `property damage' for which any insured may be held liable by reason of: (1) Causing or contributing to the intoxication of any person; (2) The furnishing of alcoholic beverages to a person under the legal drinking age or under the influence of alcohol; or (3) Any statute, ordinance or regulation relating to the sale, gift, distribution or use of alcoholic beverages. C