Insurer Loses Appeal of Sub-Subcontractor Claim

     NEW ORLEANS (CN) – An insurance company must cover the loss of a sub-subcontractor’s faulty wiring work on an airplane, the 5th Circuit ruled.

     Judge Haynes found that the lower court improperly granted summary judgment to Hartford Insurance Co.
     Hartford had insured BaySys Technologies for work on the Boeing 737. BaySys hired subcontractor Gore Design Completions, which in turn subcontracted with AeroTask to wire the in-flight entertainment system.
     The wiring system malfunctioned, damaging the plane.
     Haynes notes that BaySys is expressly mentioned in the claim, “and Gore is expressly accused of being responsible for BaySys as its agent.”
     Therefore, Hartford’s policy must cover Gore’s action of hiring AeroTask for the wiring work.

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