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Court says typewritten note can override stock terms in marine coverage
The July 15, 2026 ruling kept a grinder damage claim alive, finding ambiguity when the certificate’s “floor to floor” language conflicted with the marine policy’s “warehouse to warehouse” clause.
A New York appeals court on July 15, 2026 kept a marine insurance coverage dispute from being dismissed, ruling that a typewritten note on a certificate of insurance can override the stock printed terms of the underlying policy, according to Insurance Business.
The dispute stemmed from a shipment arranged by Pride Machinery Sales, Inc., which bought coverage from Tokio Marine America Insurance Company for a grinder shipped to the premises of Machine Tool Repair & Sales, Inc. Machine Tool was the named insured, and after the grinder arrived on April 18, 2019, an employee reported that the grinder fell from a forklift, allegedly sustaining irreparable damage.
The court said the decision turned on two competing delivery time phrases in the insurance file. Tokio Marine argued the policy’s “warehouse to warehouse” clause ended coverage until delivery to the final warehouse, but Machine Tool pointed to a typewritten line on the certificate stating coverage ran “warehouse floor to floor,” with the appellate court concluding the typewritten wording prevailed over conflicting pre-typed policy provisions.
The appeals court also found that the meaning of “floor to floor” was not apparent, leaving triable issues of fact over whether the loss was covered. On a separate issue, the court dismissed Pride’s cross-claims against Tokio Marine for alleged bad faith and Prompt Payment Act violations, citing the lack of a contract between Pride and the insurer.