In Regal Construction Corp. v. National Union Fire Ins. Co. of Pittsburgh, PA, 2009 Slip Opinion 05831 (1st Dept. 2009), the court held that National Union was obligated to defend and indemnify URS Corp. in an underlying personal injury action. At issue was the status of URS as an additional insured under a policy issued to the prime contractor, Regal, for a construction and renovation project at Riker’s Island. The injured claimant was the employee of Regal, who was injured while supervising the demolition of the building’s bath and shower area when he slipped and fell in an area that had recently been painted. There was deposition testimony that a URS employee had painted the area.

The policy provided for additional insured coverage only with respect to liability arising out of Regal’s ongoing operations performed for URS. The court cited the Court of Appeals’ decision in Worth Construction Inc. v. Admiral Ins. Co., 10 NY3d 411 (2008) but distinguished the court’s decision in Worth, noting that Regal, the prime contractor, had responsibilities that encompassed all of the demolition and construction work to be done. They found, thus, that there was a causal connection between the plaintiff’s injury and Regal’s work as a prime contractor and, after noting that the focus on the phrase "arising out of ongoing operations" is not on the precise cause of the accident but the general nature of the operation in the course of which the injury was sustained, determined that Regal Corp. was obligated to defend and indemnify URS in the underlying bodily injury action.