A recent New York appellate decision clarifies when property owners can – and can’t – claim additional insured status under a contractor’s commercial liability policy.
On October 14, 2025, the Appellate Division, First Department, issued its decision in 600 Associates LLC et al. v Illinois Union Insurance Company, a case that examined whether property owners and developers could claim coverage as additional insureds under a commercial liability policy issued for a Bronx construction project.
The dispute began when 600 Associates LLC, 600 East 156th Street Housing Development Fund Corporation, and 600 East 156th Street LIHTC, LLC – collectively the owners of 600 East 156th Street – contracted Mega Contracting Group, LLC to perform construction work. Mega, in turn, subcontracted with Allen Blvd Interiors, which then subcontracted part of its work to Len & Mar Drywall Corp. Len & Mar held an insurance policy with Illinois Union Insurance Company…