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Pekin Ins. Co. v. Designed Equipment Acquisition Corp.

2016 IL App (1st) 151689 (Ill. App., 2016)

Words & Phrases

Duty To Defend: Contractual Indemnity

Trial Judge

Peter Flynn

Appellate Judge



Insured contract exception to employee exclusion did not apply because indemnity provision void.

Fact Summary

Lessor of scaffolding was not an additional insured under lessee’s liability policy because the additional insured endorsement assumed a subcontractor relationship and required that the named insured lessee be “performing operations” for the additional insured. Liability policy did not cover the named insured lessee’s indemnity obligation under the lease because the lease was for scaffolding used in a construction project, making the indemnity provision void under the Construction Contract Indemnification for Negligence Act.

However, the Court did find that the indemnity provision qualified as an insured contract.