A.J. McNulty & Co. v. Lloyds of London
Plaintiff construction project subcontractors, holding general liability insurance from Lloyds of London and workers' compensation policies from AIG, initiated a declaratory judgment action against Lloyds. This action sought to compel Lloyds to defend and indemnify them in third-party lawsuits arising from worker injuries and deaths on a construction project, where AIG had already defended the plaintiffs in their capacity as third-party defendants. The Supreme Court granted Lloyds' cross-motion for summary judgment, determining that an employers' liability exclusion in the Lloyds policy validly precluded coverage for employee bodily injury or death related to employment. Furthermore, the court found that Lloyds' disclaimer of coverage was timely, as the insurer's obligation to disclaim arose only when it was served with the declaratory judgment action papers in September 2001, and it disclaimed shortly thereafter. The Appellate Division unanimously affirmed this decision, rejecting the plaintiffs' arguments.