NJ High Court Expands Emotional Distress Coverage

Law360, New York (June 24, 2011, 4:06 PM EDT) -- The New Jersey Supreme Court on Tuesday shifted the burden of proof onto insurers to defend against certain claims involving severe emotional distress that may trigger bodily injury provisions in commercial general liability policies.

The case centers on a landlord's dispute with its insurer over the insurer's duty to defend against claims by tenants who were badly burned by a flash fire inside an apartment. The insurer, Greater New York Mutual Insurance Co., undertook defense for the claims of three children who were hurt in the...
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