Landlord Was Additional Insured, But Only When It Faced Liability Arising Out Of Tenant’s Acts.

A restaurant burned down because of the restaurant’s negligence. There were two insurance policies. The restaurant’s policy listed the landlord as an additional insured, which also had an exclusion for claims between insureds. The landlord had a separate policy and collected under it. The landlord’s insurer brought an action for subrogation against the restaurant owner, alleging negligence that caused the fire. The two insurance companies battled over whether the restaurant’s insurer provided coverage of any claim brought by another insured. Both the trial and the appellate court decided the landlord was an insured under the restaurant’s policy “only when and where it faces liability arising from [the restaurant’s] acts, undertaken in the course of [the restaurant’s] operations on leased premises.” Thus, the exclusion for claims between insureds did not apply here.  Gemini Insurance Company v. Delos Insurance Company (Cal. App. Second Dist., Div. 5; December 5, 2012) (Case No. B239533).