Gap, Inc. v. Fireman's Fund Insurance
The Gap, an additional insured on a commercial general liability (CGL) policy issued by Fireman's Fund to Fisher Development, Inc. (FDI), sought coverage for property damage to its premises caused by a subcontractor. The central issue was whether the policy's "owned property" exclusion applied to The Gap as an additional insured under the CGL portion. The court clarified that CGL policies provide third-party liability coverage, not first-party property damage coverage for the insured's own property. The construction agreement also explicitly obligated The Gap to maintain its own property insurance. Consequently, the appellate court reversed the lower court's decision, granting Fireman's Fund's motion for summary judgment and denying The Gap's cross-motion, ruling that no coverage existed for The Gap's property damage under the policy.