Consequential Damages Can Exceed Policy Limits In Nevada

By Daniel Epstein and Brian Scarbrough ( February 4, 2019, 12:14 PM EST) -- In a recent opinion, Century Surety Co. v. Andrew, the Supreme Court of Nevada concluded that when insurers breach their duty to defend, policyholders may be entitled to consequential damages that are not capped by policy limits, even without any showing of bad faith.[1] The amount of consequential damages is a question for fact finders to answer by determining how much damage naturally flowed from the breach of the insurer's duty to defend. Policyholders with duty to defend policies applying Nevada law should take note of this decision and that when confronting an insurer's breach of the duty to defend it is possible to recover amounts both in addition to a policyholder's defense costs and above policy limits....

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