Deadly NYC Crane Collapse Insurance Challenged

New York’s top court said misrepresentations on insurance forms by the operator of a crane involved in a deadly collapse four years ago could also limit coverage for the developer and builder. The accident killed seven people in Manhattan.

Alliance Insurance claims Joy Contractors said it specialized in drywall installation, didn’t do exterior work and did no work above the second floor except for indoor drywall. The company says that means no coverage for the 200-foot-tall crane that toppled in March 2008. The Court of Appeals said in June if Alliance proves that was not a valid policy for Joy, it also won’t cover “additional insureds,” including general contractor Reliance Construction and the owners and developers.