Madawick Contracting Co., Inc., Appellant v. Travelers Insurance Company, Respondents

Summary

The New York Court of Appeals reversed the Appellate Division, holding that the liability insurance policy’s reference to a “suit” includes arbitration, obligating the insurer to defend the subcontractor in the arbitration proceeding and to pay any award confirmed by the court. The court interpreted the policy’s terms in light of the subcontract’s arbitration clause and rejected the insurer’s argument that only a court judgment triggered coverage.