Indiana Insurance v. Powerscreen of Chicago

Illinois Appellate Court
Civil Court
Insurance
Citation
Case Number: 
2012 IL App (1st) 103667
Decision Date: 
Friday, June 29, 2012
District: 
1st Dist.
Division/County: 
Cook Co., 2d Div.
Holding: 
Affirmed and remanded with directions.
Justice: 
CUNNINGHAM
Company's contractual obligation to perform necessary maintenance work satisfied the "ongoing operations" language under insurance policy's terms, and its alleged failure to do so places company within parameters of allegations in underlying injury suit by construction employee, thus triggering coverage. Although company hired subcontractor company to fix concrete crusher prior to accident, company retained full possession and control of crusher and had duty to repair and maintain equipment under rental agreement as "ongoing operation" for this subcontractor. Thus, subcontractor was additional insured under policy, and insurer owed duty to defend it in underlying suit. (QUINN and CONNORS, concurring.)