Clear and Unambiguous Exclusion Must Be Enforced

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In Crown Jewels Estate Jewelry, Inc., Doing Business as Stephen Russell v. The Underwriters at Interest at Lloyd’s London, etc., 2021 NY Slip Op 03110, Index No. 655939/17, Appeal No. 13833, Case No. 2020-04312, Appellate Division of the Supreme Court of the State of New York (May 13, 2021) Crown Jewels appealed. Plaintiff, a high-end jeweler in Manhattan, was insured under an all-risk, jewelers block policy issued by defendant.

ZALMA OPINION

Jewelers are happy to loan expensive jewelry to movie stars and movie companies because the publicity is valuable. They demand insurance protection. Unfortunately, Crown Jewels relied on the thief to give him the e-mail and telephone number of the insurer to confirm the existence of insurance. Of course, the person contacted was an associate of Sabatino, the jewels were delivered and never seen again. Crown Jewels will never loan jewelry again without a complete and thorough investigation of the borrower and the insurer who must name them as an insured. A very expensive lesson learned.