Plaintiff insurance company issued policy naming Defendant company, which had entered into agreements with clients to obtain workers' compensation insurance on their behave, as insured and extended coverage through policy endorsements to its employees that had been leased to its clients. Plaintiff filed declaratory action seeking declaration that it had no duty to defend or indemnify Defendant in workers' compensation claims filed by employees of Defendant's clients. Court properly found Plaintiff had duty to defend, as claims fell within or potentially within policy coverage. Court's finding that Plaintiff has duty to indemnify was premature and must await a final determination by Workers' Compensation Commission. Court erred in granting summary judgment in favor of Defendant on Plaintiff's claim for rescission, as it requires factual determination as to whether Defendant leased any employees. (HYMAN and NEVILLE, concurring.)
Illinois Appellate Court
Civil Court
Insurance