Insurer Must Cover Defamation In Ad Injury Suit: Judge

Law360, Washington (September 16, 2011, 4:43 PM EDT) -- Two contractors suing an insured of American Home Assurance Co. did not need to specifically allege defamation claims to trigger defense coverage under an AHA advertising injury policy, a California federal judge ruled Wednesday in the insured's coverage suit against AHA.

The case revolved around whether AHA had breached its duty to defend Career Systems Development Corp. in two underlying lawsuits filed by independent contractors after their contracts with Career Systems were terminated. AHA initially defended both actions but then withdrew, forcing Career Systems to incur...
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