A federal court has ruled that Amtrust-owned Associated Industries Insurance Company is not required to defend or indemnify a Pennsylvania-based crane inspection firm in two personal injury lawsuits, finding that the claims fall under exclusions for professional services in the company’s liability policy.
The ruling, issued by Judge Cynthia M. Rufe of the US District Court for the Eastern District of Pennsylvania, stems from a March 5, 2022 accident at a high-rise construction site in Philadelphia. A crane’s rigging system detached and fell from an upper level of the site at One Dock Street, striking two workers, Joshua Rastelli and Kevin Flanagan, and causing injuries. Both men later filed lawsuits in the Philadelphia County Court of Common Pleas.
The suits named Atlantic Crane Inspection Services Inc. as one of several defendants. According to the complaints, Atlantic Crane had provided inspection and related services for the crane and its components before the accident. The plaintiffs allege that the company failed to identify hazards or recommend corrective measures that could have prevented the rigging system's detachment.
Atlantic Crane sought coverage under a commercial general liability policy issued by Associated Industries, which included standard bodily injury coverage. The insurer filed a declaratory judgment action in federal court, arguing that two endorsements in the policy excluded the claims from coverage.
The court agreed. Judge Rufe found that the Engineers, Architects or Surveyors Professional Liability Exclusion unambiguously applied. That clause bars coverage for “bodily injury,” “property damage,” or “personal and advertising injury” arising from “professional services,” which are defined to include “inspection” and “supervisory” activities.
“The Underlying Complaint alleges that Atlantic Crane conducted services that are covered by the Engineer Exclusion’s definition of ‘Professional Services,’” Judge Rufe wrote. “Inspection activities are one of the enumerated services listed.”
The court noted that the plaintiffs’ allegations focused exclusively on Atlantic Crane’s inspection responsibilities, including its alleged failure to ensure the crane’s safety and to report or address deficiencies. Because all liability asserted in the underlying complaints stemmed from these services, the exclusion applied in full.
Atlantic Crane had argued that it was not performing services as an engineer, architect, or surveyor, and that the exclusions therefore did not apply. But the court rejected this position, emphasizing that the exclusion applies to the nature of the services performed—not the title or designation of the service provider.
Judge Rufe also acknowledged the presence of a broader exclusion—the Designated Professional Services Exclusion—which removed coverage for “all professional services.” However, because the Engineer Exclusion was found to apply conclusively, the court did not separately analyze the broader exclusion.
The court denied Atlantic Crane’s motion for judgment on the pleadings and granted the insurer’s cross-motion, declaring that Associated Industries has no duty to defend or indemnify Atlantic Crane in the ongoing state court lawsuits.
