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Expert Analysis

6th Circ. Errs In Conflating Primary With Excess Insurance

Law360, New York (July 22, 2014, 11:40 AM EDT) -- On July 15, 2014, the Sixth Circuit Court of Appeals handed down a controversial decision, not following established Ohio law, in IMG Worldwide Inc.; IMG Academies LLP v. Westchester Fire Insurance Co., et al.[1] The decision radically departs from established precedent in concluding that (1) under an excess general liability policy, liability for investment losses can be regarded as covered "property damage," and (2) an excess insurance policy imposes a "duty to defend" on the excess insurer even when coverage under the primary policy is in place, and even when the excess insurer may be deprived of recourse against the primary insurer....

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