Sky Solar, a solar energy project developer, sued its contractor's insurer (Economical) and insurance broker (FCA) after two fires involving transformers at its solar projects.
Sky Solar was an additional insured under the contractor's commercial general liability (CGL) policy.
After the second fire, Sky Solar settled with the project buyer (Firelight) for remediation costs and lost income, then sought indemnity from Economical.
Economical denied coverage, arguing Sky Solar's liability did not arise from the contractor's operations and that Sky Solar breached a policy condition by settling without consent.
Sky Solar also claimed negligence and bad faith against FCA for issuing certificates of insurance.
The court dismissed Sky Solar's action against both Economical and FCA, finding no coverage under the policy and no breach of duty by the broker.