Blue Hen Mechanical, Inc. v. Atlantic States Insurance Co., 2011 Del. Super. LEXIS 176 (2011)

Narrow allegations in a complaint do not determine an insurer's duty to defend.

When determining an insurer's duty to defend and indemnify in a declaratory judgment action, a court looks to the allegations of the complaint and the insurance policy at issue. However, in determining whether an insurer is bound to defend, the courts adhere to the following principles: (1) Where there is some doubt as to whether the complaint alleges an insured risk, the doubt will be resolved in favor of the insured; (2) ambiguity in the pleadings is resolved against the carrier; and (3) if one count or theory alleged in the complaint triggers coverage, the duty to defend arises. Moreover, the court is not bound by narrow allegations in a complaint but may review the complaint as a whole and make all reasonable inferences that may be drawn from the facts alleged to determine an insurer's duty to defend.

Case Law Alert - 3rd Qtr 2011