Graphic Arts Mutual Insurance v. Bakers Mutual Insurance
This case concerns a dispute between Graphic Arts Mutual, an automobile liability insurer, and Bakers Mutual, a workers' compensation carrier, over which policy covers an employer's derivative liability in a third-party personal injury action. An employee of Chimes Cake Co. was injured by a co-employee's negligence, leading to a third-party claim against the employer under the Dole-Dow doctrine. Graphic disclaimed responsibility, citing policy exclusions for employee bodily injury and workers' compensation obligations. The court affirmed that Graphic's automobile policy covered the employer's vicarious liability to a third-party tort-feasor, as this obligation did not fall within the stated exclusions. The decision emphasizes a functional analysis of separate insurance lines, concluding that automobile liability should cover obligations arising from vehicle operation.