No Coverage Owed Based On Claims Against Third-Party Security Guard

The District Court for the Eastern District of New York ruled that a contracted security exclusion precluded an insurer’s duty to defend when claims were made against a third-party security company and the insured. The case is Clear Blue Specialty Ins. Co. v. TFS NY, Inc., 2023 U.S. Dist. LEXIS 157665 (E.D.N.Y. 2023). 

A man filed a personal injury action against TFS NY (TFS) after he was assaulted by employees at a nightclub owned and operated by the company. He later amended his complaint to include the third-party company that provided security for the nightclub. TFS had purchased a CGL policy from Clear Blue Specialty Insurance (Clear Blue), which included a Third Party or Contracted Security exclusion.