Insurer Needn't Cover Pre-Tender Defense Costs: 11th Circ.

Law360, Los Angeles (January 9, 2017, 10:38 PM EST) -- The Eleventh Circuit ruled Monday that Travelers Property Casualty Co. doesn't have to cover defense costs that an online custom embroidery company incurred in an underlying copyright infringement suit prior to notifying the insurer, finding that Travelers did not violate Florida's Claims Administration Statute.

In a published opinion, a panel of the appellate court held that Travelers was not precluded from denying coverage for EmbroidMe's pre-tender defense costs on account of its failure to communicate that argument to the embroidery company within the CAS-required 30 days. That's because Travelers relied on a policy exclusion barring EmbroidMe from obtaining reimbursement of any...

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