Mutually Exclusive Polices Found to Share Defense Obligation

When the use of an auto is involved in an accident, normally a professional liability insurer whose policy excludes claims arising out of the use of an auto will have no obligation to share with the auto insurer in the defense of the policyholder. However, that is exactly what occurred in Knightbrook Ins. Co. v. Northfield Ins. Co., 2016 U.S. Dist. LEXIS 9265 (E.D. Pa. Jan. 26, 2016).

In Knightbrook, an underlying plaintiff brought suit against the policyholder, an ambulance company. The underlying …

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