Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

The Doctrine of Implied Co-Insureds

By Gina A. Leib
March 28, 2006

Over the past several decades, federal and state courts nationwide have heard cases where the implied co-insureds doctrine has been asserted and have come to totally different conclusions. The doctrine holds that an insurer may not bring suit by way of subrogation against a tenant who negligently or willfully causes damages to property insured under an insurance policy procured by a landlord on the ground that the tenant is a co-insured under that policy. Recently, the U.S. District Court for the Southern District of New York considered a case involving the implications of the implied co-insureds doctrine and the events of Sept. 11, 2001.

In Industrial Risk Insurers v. Port Authority of NY & NJ, 387 F.Supp.2d 299 (S.D.N.Y. 2005), the court considered whether aspects of the implied co-insureds doctrine precluded an insurer from filing suit by way of subrogation against a tenant in the 7 World Trade Center building, adjacent to the twin towers, which stored fuel in several fuel tanks located inside the building. The insurer alleged that the tenant's gross negligence in storing the fuel contributed to the inferno that destroyed 7 World Trade Center when flaming debris from the collapsing twin towers ignited the building. The tenant countered that the implied co-insureds doctrine, as adopted by the New York courts, prevented the insurer from maintaining a subrogation suit against the tenant. Ultimately, the court held in favor of the tenant and dismissed the insurer's subrogation claim against the tenant.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
New York's Latest Cybersecurity Commitment Image

On Aug. 9, 2023, Gov. Kathy Hochul introduced New York's inaugural comprehensive cybersecurity strategy. In sum, the plan aims to update government networks, bolster county-level digital defenses, and regulate critical infrastructure.

The Bankruptcy Hotline Image

Recent cases of importance to your practice.

The DOJ's Corporate Enforcement Policy: One Year Later Image

The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.

How AI Has Affected PR Image

When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.

Use of Deferred Prosecution Agreements In White Collar Investigations Image

This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.