Applying a U.S. Supreme Court decision in the context of insurance coverage for a bank, a New York appellate court ruled that the amounts paid to the Securities and Exchange Commission (SEC) as disgorgement under a cease and...more
A New York federal district court recently held that US Coachways, a bus charter broker, was entitled to coverage under its professional liability policy for the costs paid to settle a TCPA class action arising from the...more
AG's Letter a Prior "Demand," Eliminates Exec's Defense -
Why it matters -
A letter stating that a government entity "may" bring an enforcement action against the policyholder if it did not "voluntarily" cease...more
High Times in the Insurance Industry: Colorado Federal Court Considers Coverage for Medical Marijuana Business -
Why it matters: With legalized marijuana businesses booming, a new decision from a Colorado federal court...more
3/21/2016
/ Claims Made Policy ,
Co-Insurance Payments ,
Commercial General Liability Policies ,
Duty to Defend ,
Farms ,
Food Safety ,
Fraud ,
Indemnification Clauses ,
Innocent Insured ,
Insurance Industry ,
Late Notices ,
Malpractice Insurance ,
Marijuana Related Businesses ,
Pesticides ,
Prejudice ,
Rescission
Despite Finding Policy Application Misrepresentation, Jury Rules Against Policy Rescission -
Why it matters: A federal jury concluded that Starr Surplus Lines Insurance Company did not have a valid basis to rescind the...more
1/23/2016
/ Bad Faith ,
Breach of Contract ,
Breach of Duty ,
Competition ,
Covenant of Good Faith and Fair Dealing ,
Duty to Defend ,
Excess Policies ,
Fraud ,
Insurance Litigation ,
Misrepresentation ,
Professional Liability ,
Rescission ,
Right to Privacy ,
TCPA ,
Uber
Court Rejects Attempt to Broaden "Employer's Liability" Exclusion, Requiring Coverage -
Why it matters: A New York federal court recently ruled that an "Employer's Liability" exclusion in a CGL policy applies only when...more
12/7/2015
/ Ambiguous ,
Commercial General Liability Policies ,
Condition Precedent ,
Construction Defects ,
Denial of Insurance Coverage ,
Faulty Workmanship ,
Insurance Litigation ,
Late Notices ,
Loss Coverage ,
Policy Exclusions ,
Property Damage
Despite Prior Suits, Policyholder Entitled to Coverage for DOJ Investigation -
Why it matters: A policyholder was entitled to coverage for a Department of Justice (DOJ) investigation despite already facing possibly...more
11/5/2015
/ Advertising Injury ,
Applications ,
Breach of Contract ,
Breach of Duty ,
Commercial General Liability Policies ,
Construction Defects ,
Copyright ,
Copyright Infringement ,
Covenant of Good Faith and Fair Dealing ,
Cross Motions ,
D&O Insurance ,
Denial of Insurance Coverage ,
Department of Justice (DOJ) ,
Discovery ,
Duty to Defend ,
Food Recalls ,
Health Insurance Portability and Accountability Act (HIPAA) ,
Heinz ,
Injunctive Relief ,
Insurance Litigation ,
Motion for Reconsideration ,
Motion for Summary Judgment ,
Omissions ,
Policy Exclusions ,
Policy Limits ,
Qui Tam ,
Right to Control ,
Trademark Infringement ,
Travelers ,
Treble Damages ,
Unfair Competition
Unfair Trade Practices Exclusion Doesn't Cover Consumer Protection Suits -
Why it matters: An unfair trade practices clause did not bar coverage for a policyholder's subsidiary, an Illinois federal court ruled, ordering...more
10/9/2015
/ Anticompetitive Behavior ,
Bad Faith ,
Bargaining Power ,
Breach of Contract ,
Class Action ,
Commercial Insurance Policies ,
Conflicts of Interest ,
Consumer Fraud ,
Cumis Counsel ,
Duty to Defend ,
False Claims Act (FCA) ,
Fraud ,
Insurance Industry ,
Insurance Litigation ,
Insureds ,
Legal Ethics ,
Negligent Misrepresentation ,
NV Supreme Court ,
Policy Exclusions ,
Reservation of Rights ,
Subsidiaries ,
The Clayton Act ,
Unfair or Deceptive Trade Practices ,
Unjust Enrichment
Exception to Mold Exclusion Requires Defense of Suit Alleging Injuries From Moldy Water -
Why it matters: An exclusion for "Fungi or Bacteria" did not prevent a federal court judge in Tennessee from ordering an insurer...more
9/10/2015
/ Ambiguous ,
Breach of Duty ,
Choice-of-Law ,
Claims Made Policy ,
Commercial General Liability Policies ,
Duty to Defend ,
Health Insurance Portability and Accountability Act (HIPAA) ,
Insurance Contracts ,
Insurance Industry ,
Insurance Litigation ,
Insureds ,
Mold Litigation ,
Notice Requirements ,
Policy Exclusions ,
Reservation of Rights
Good News for Corporate Policyholders: Insurer Cannot Refuse Coverage Based on Insured's Assignment of Rights Under Policies After Loss Has Occurred -
Why it matters: Reversing its holding in a 2003 case, the Supreme...more
8/28/2015
/ Abatement ,
Asbestos Litigation ,
Attorney's Fees ,
Bad Faith ,
CA Supreme Court ,
Carbon Emissions ,
CERCLA ,
Clean Air Act ,
Commercial General Liability Policies ,
Consent Decrees ,
Consent to Assignment ,
Cumis Counsel ,
D&O Insurance ,
Duty to Defend ,
Environmental Protection Agency (EPA) ,
Environmental Remediation Costs ,
FDIC ,
Fluor ,
Hartford Casualty Ins. ,
Hartford Insurance Company ,
Indemnification ,
Insurance Litigation ,
Insureds ,
Liberty Mutual Insurance Company ,
Mitigation ,
Policy Exclusions ,
Receivership
Insured's Notice to Broker Satisfied Policy Requirements, Illinois Court Rules -
Why it matters: An insured's notice to its broker satisfied the policy's notice requirements, an Illinois appellate panel recently...more
8/14/2015
/ Apparent Authority ,
Auto Insurance ,
Bad Faith ,
Breach of Contract ,
Car Accident ,
Carbon Emissions ,
Civil Conspiracy ,
Class Action ,
Cyber Insurance ,
Data Breach ,
Duty to Defend ,
Fraud ,
Insurance Industry ,
Insureds ,
Mediation ,
Notice Requirements ,
Nuclear Waste ,
Patient Privacy Rights ,
Policy Exclusions ,
Public Officials ,
Reservation of Rights ,
Settlement ,
Workplace Injury
Two Years, Too Long for Coverage Under Claims-Made-and-Reported Policy -
Why it matters: Claims-made-and-reported policies require that the claim be both made against the insured and reported to the insurer within the...more
8/1/2015
/ Claims Made Policy ,
Delay Claims ,
Dismissals ,
Duty to Defend ,
Excess Policies ,
Fire Damage ,
Late Notices ,
Malpractice Insurance ,
Motion To Intervene ,
Notice Requirements ,
Property Damage ,
Property Insurance
California Court: Rejected Demand Within Policy Limits Not Necessary for Bad Faith Claim -
Why it matters: Insurers must proceed with caution when they become aware that a settlement within policy limits is possible,...more
7/16/2015
/ Appeals ,
Bad Faith ,
Breach of Contract ,
CERCLA ,
Commercial General Liability Policies ,
Counterclaims ,
D&O Insurance ,
Declaratory Relief ,
Duty to Defend ,
Duty to Settle ,
Environmental Protection Agency (EPA) ,
Homeowner's Insurance ,
Homeowners Association (HOA) ,
Insurance Industry ,
Insurance Litigation ,
Insureds ,
Motion to Dismiss ,
Policy Exclusions ,
Policy Limits ,
Potentially Responsible Party (PRP) ,
Scope of Coverage ,
Scope of the Claim ,
Summary Judgment ,
TX Supreme Court
In the Context of a Bad Faith Claim, Insurer’s Defense That Coverage Denial Was Reasonable Put at Issue Otherwise Protected Attorney-Client and Work Product Communications -
Why it matters: Recognizing the “conflicting...more
7/3/2015
/ Attorney-Client Privilege ,
Bad Faith ,
Breach of Contract ,
Choice-of-Law ,
Commercial Bankruptcy ,
Commercial General Liability Policies ,
Commercial Insurance Policies ,
Cross-Claims ,
Discovery ,
Due Diligence ,
False Advertising ,
Insurance Litigation ,
Misrepresentation ,
Motion for Reconsideration ,
Notice Requirements ,
Policy Exclusions ,
Summary Judgment ,
Work-Product Doctrine
No Policy? No Problem, The First Circuit Rules In A Coverage Dispute -
Why it matters: This case addresses the standard for pleading a missing insurance policy where the alleged insured, a private educational...more
6/22/2015
/ Commercial General Liability Policies ,
Commercial Insurance Policies ,
D&O Insurance ,
E&O Policies ,
Exclusions ,
Insurance Industry ,
Investment Adviser ,
Lloyds of London ,
Policy Exclusions ,
Ponzi Scheme ,
Restaurant Industry
No Policy? No Problem, The First Circuit Rules In A Coverage Dispute -
Why it matters: This case addresses the standard for pleading a missing insurance policy where the alleged insured, a private educational...more
New Jersey Supreme Court Rules Claimants May Be Entitled to Recover Attorneys’ Fees in Coverage Cases Even Without Establishing Liability in the Underlying Action -
Why it matters: The New Jersey Supreme Court recently...more
Recent Lawsuit Underscores Critical Lessons for Purchasers of Cyber Insurance -
Why it matters: Columbia Casualty Company v. Cottage Health Systems was filed on May 7, 2015, in the Central District of California. Cottage...more
5/21/2015
/ Attorney-Client Privilege ,
Commercial General Liability Policies ,
Cyber Insurance ,
Cybersecurity ,
Data Breach ,
Data Protection ,
Insurance Industry ,
Insurance Litigation ,
Lead Paint ,
Liability Insurance ,
Pollution Exclusion ,
Privilege Waivers ,
Professional Service Exclusion ,
Settlement ,
Sun Capital Partners ,
Work-Product Doctrine
California Appellate Court: All Claims “Arising From” Ponzi Scheme Are Precluded -
Why it matters: Concluding that any claims related to a Ponzi scheme—even if they involved different investors, investments, or...more
5/7/2015
/ Appeals ,
Arbitration ,
Broker-Dealer ,
Claims Made Policy ,
Class Action ,
D&O Insurance ,
GA Supreme Court ,
Insurance Litigation ,
Investment Adviser ,
Liability Insurance ,
Policy Exclusions ,
Ponzi Scheme ,
Workplace Injury
Policyholder Can Keep Selected Counsel, Court Rules; Insurers’ Objection Too Late -
Why it matters: A policyholder was able to maintain its selected defense counsel after a federal court judge ruled that the insurers’...more
4/23/2015
/ Class Action ,
Commercial General Liability Policies ,
Duty to Defend ,
Insurance Litigation ,
Mortgage Lenders ,
Policy Limits ,
Property Damage ,
TCPA ,
Unsolicited Faxes ,
Vacant Properties ,
Vandalism
Legal Issues Not Proper Expert Testimony -
Why it matters: As a good reminder concerning the boundaries for admissibility of expert opinions, a federal court in Texas recently granted a policyholder’s motion to strike an...more
4/4/2015
/ Asbestos ,
Asbestos Litigation ,
Buckyballs ,
Claims Made Policy ,
Duty to Defend ,
Expert Testimony ,
Indemnification ,
Insurance Industry ,
Intellectual Property Litigation ,
Liability Insurance ,
Medical Malpractice ,
Policy Exclusions
New York Federal Court Rejects Insurer’s Request for Recoupment -
Why it matters: The federal court, applying New York law, held that an energy drink manufacturer’s advertising coverage claim—arising from underlying...more
3/13/2015
/ Advertising Injury ,
Architects ,
Asbestos Litigation ,
Class Action ,
Copyright ,
Copyright Infringement ,
Duty to Defend ,
Food Manufacturers ,
Illegal Drugs ,
Insurance Industry ,
Late Notices ,
Recoupment ,
Reservation of Rights
Separate Contract Serves to Limit Insurance Coverage for Deepwater Horizon Spill, Texas Supreme Court Rules -
Why it matters: The Texas Supreme Court rejected BP’s $750 million claim for coverage under Transocean...more
Cyber Risk Insurance Policies: What You Need to Know -
Editor’s Note: As data breach incidents and related cyber risks continue to increase and gain publicity—and government agencies become more actively involved in...more
2/25/2015
/ Centers for Medicare & Medicaid Services (CMS) ,
Cyber Insurance ,
Cybersecurity ,
Data Breach ,
Data Protection ,
Data-Sharing ,
EHR ,
Electronic Medical Records ,
Health Insurance Portability and Accountability Act (HIPAA) ,
Healthcare ,
Hospital Mergers ,
Hospitals ,
Long-Term Care ,
Managed Care Contracts ,
Medical Records ,
The Clayton Act
California Court Adopts Broad Interpretation of “Occurrence,” Finds Coverage -
Why it matters: In a victory for policyholders—and a continuation of the trend of courts adopting a broad reading of the term “occurrence”...more