Policy Reformed to Add New Building Owner as Additional Insured

    The lower court correctly reformed the policy to replace the prior owner with the new owner as an additional insured under the policy. Wesco Ins. Co. v. Fulmont Mut. Ins. Co., 2023 N.Y. App. Div. LEXIS 2650 (N. Y. App. Div. May 11, 2023). 

    Beyond was sued as owner of the building in a personal injury lawsuit. The former owners leased the building to the tenant who included the then-owners as additional insureds under the tenant’s policy. When the deed to the building was transferred to Beyond, the additional insured endorsement in the tenant’s policy was not updated to reflect the change in ownership. 

    Beyond’s insurer, Wesco, tendered the lawsuit to the tenant’s insurer, Fulmont. Coverage was denied because Beyond was not an additional insured under the tenant’s policy. 

    The lower court granted West’s motion for summary judgment to reform the policy to merely replace the prior owner with Beyond as the additional insured.  The Appellate Division affirmed It was clear that Fulmont always intended to extend coverage to the building and its owner as additional insureds. The name of the additional insured in the policy was not dispositive if the intent to cover the risk was clear.