General Liability
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March 20, 2023
Insurer Must Cover 'Cheese Wall' Destruction Fight, Co. Says
A construction subcontractor told a California federal court that a Travelers unit breached its policy by seeking settlement reimbursement for a dispute over the destruction of an artist's "Cheese Wall" installation protesting the southern border wall, arguing the underlying lawsuit left open the possibility of negligent conduct.
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March 20, 2023
AIG Unit Needn't Cover Window Supplier's Replacement Costs
An AIG unit doesn't have to cover costs incurred by a subcontractor to replace windows at a condo tower that prematurely broke down due to ultraviolet radiation exposure, a California federal court ruled, saying claims by numerous homeowners don't involve covered property damage.
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March 20, 2023
Broker Gets Win In Buccaneers Settlement Coverage Suit
An Indiana federal judge sided with an insurance broker in a suit from Axis Insurance Co., finding that the broker did not need to indemnify the insurer for a voluntary settlement with the Tampa Bay Buccaneers over a player's claims that he contracted an infection at a team facility.
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March 20, 2023
Evanston Insurance Must Indemnify NJ Co. Over Elevator Fall
A New Jersey appeals court found Monday that Evanston Insurance must cover claims by a custodian who was injured after falling 20 feet from an elevator while vacuuming, ruling the incident isn't precluded from a policy that excludes bodily injury claims arising from operations, services or work done on elevators.
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March 20, 2023
Insurers Must Defend Contractor In Sewage Exposure Suit
A pair of Hanover insurers must defend a contractor in an underlying suit over injuries that a man sustained as a result of exposure to raw sewage, a Washington federal court ruled, saying the anti-concurrent cause provisions in their policy exclusions are not enforceable under state law.
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March 20, 2023
Judge Recommends Trimming Insurer Suit Over Inn Overdose
Kinsale Insurance Co. failed to sufficiently argue that certain exclusions in an inn's commercial general liability policy barred coverage for claims the inn failed to prevent a fatal fentanyl overdose, a Florida federal magistrate judge found, amounting one of the insurer's counts to a "shotgun pleading."
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March 17, 2023
Insurer Can Bring Suit To Avoid Covering Rape Claims
An insurer may bring a declaratory judgment action seeking to avoid covering a day care owner whose son raped a child, a Missouri federal judge ruled, finding the dispute is ripe even though no underlying suit has been filed against the owner.
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March 17, 2023
Terminix Says Swiss Re Unit Must Cover $8M Judgment
A Swiss Re unit must provide coverage for an $8 million judgment entered against Terminix in a personal injury suit, the pest control company told a California federal court, saying the underlying action falls under the policy's "products-completed operations hazard" section.
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March 17, 2023
Insurer Must Defend Medical Product Co. In Trademark Suit
An insurer must defend a wholesale medical products distributor in an underlying trademark suit, a New York federal court ruled, saying a prior publication exclusion in a commercial general liability policy does not bar coverage.
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March 17, 2023
Russian Oil Price Caps Raise Compliance Issues For Insurers
Following a novel price cap regime on Russian oil and petroleum products imposed by the European Union and the member countries of the G-7 beginning in December, experts say maritime insurers face uncertainty over how to comply with the complex sanctions landscape.
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March 17, 2023
As Abuse Limitations Windows Open, Coverage Fights Follow
A state's opening of the statute of limitations for sexual abuse victims often leads to a surge in insurance coverage disputes, experts say, leaving policyholders looking to a variety of carriers to help shoulder the burden of defense and settlement costs.
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March 16, 2023
Insurers Can't Yet Duck Coverage For $40M Citgo Cargo Loss
Underwriters at Lloyd's of London and other insurers cannot yet escape covering Citgo Petroleum Corp. for the loss of $40 million in crude oil cargo resulting from political unrest in Venezuela, a New York federal judge ruled, finding that the cargo was insured upon being loaded onto the vessel.
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March 16, 2023
Assault Not Barred By Abuse Exclusion, Mass. Justices Say
The Supreme Judicial Court of Massachusetts on Thursday reversed an insurer's win that relieved it from covering injuries that a man suffered after an assault, finding that an abuse and molestation exclusion in the perpetrator's homeowners policy does not apply.
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March 16, 2023
Peeping Tom Landlord Settlement Not Covered By Insurance
A Maine federal judge ruled Travelers isn't required to cover a $150,000 settlement between a tenant and the landlord accused of recording her without consent in the bathroom of her rental because the harm that followed was predictable and therefore excluded by the homeowners' policy.
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March 16, 2023
Travelers, Hartford Relieved Of $1.5M Chemical Cleanup Deal
Travelers and Hartford have no obligation to cover a $1.5 million settlement for costs incurred in remediating a site contaminated by dry-cleaning chemicals, a New Jersey state appeals court affirmed, saying the agreement was not reached with the consent of the carriers.
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March 15, 2023
USC Says Chubb Won't Provide Coverage For Tyndall Suits
USC accused several Chubb Insurance units of breaching contractual obligations and engaging in "gamesmanship" by withholding millions of dollars in coverage arising from sexual assault allegations against disgraced gynecologist Dr. George Tyndall, according to a complaint removed to California federal court on Wednesday.
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March 15, 2023
9th Circ.'s Willful Acts Ruling Leaves Defense Question Open
The Ninth Circuit's Wednesday ruling that an insurer has no obligation to cover a settlement over a law firm's alleged malicious prosecution has some legal experts wondering whether carriers are still required to provide a defense for those claims.
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March 15, 2023
Travelers Needn't Cover Businessman In Plane Crash Suit
Travelers doesn't have to cover a real estate developer and his business entities for potential liability stemming from a plane crash that killed five, a Louisiana federal judge found, agreeing with the insurer that they don't qualify for coverage under policies issued to another party.
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March 15, 2023
2nd Circ. Won't Rehear Shipping Co.'s Asbestos Coverage Bid
The Second Circuit dashed a shipping company's last hope of securing coverage from a CNA unit for its nearly $4.6 million settlement of 47 asbestos injury lawsuits from various seamen, rejecting the shipping company's bid for a rehearing before a three-judge panel or all the circuit's judges.
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March 15, 2023
Boy Scouts Ch. 11 Objectors Slam $4M Funding Bid
Insurers and victims groups challenging the Boy Scouts of America's Chapter 11 plan are balking at its proposal to spend nearly $4 million on a settlement trust while their appeal at U.S. District Court is still pending, and are asking a Delaware bankruptcy judge to deny the request.
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March 15, 2023
Nationwide Unit Relieved From Energy Cos.' Easement Row
A Nationwide unit does not have to defend or indemnify a green energy company in an underlying lawsuit with an oil and gas company, a West Virginia federal judge ruled, finding that the two commercial general liability policies the insurer issued do not offer coverage for the easement dispute.
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March 14, 2023
11th Circ. Orders USAA's $5M Bad-Faith Fight To Trial
A USAA unit must face claims that its alleged bad-faith conduct caused its policyholder to suffer a $5 million excess judgment in a trial over a serious car accident, the Eleventh Circuit said Tuesday, reversing and remanding the insurer's early win against the injured driver.
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March 14, 2023
5th Circ. Upholds Toss Of Sea Cable Damage Coverage Row
The Fifth Circuit affirmed the dismissal of a contractor's suit against its insurance broker and insurer over the lack of coverage for damage to an undersea power cable off the coast of Saudi Arabia.
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March 14, 2023
Mich. High Court Rejects Insurer's Bid To Question Clinics
The Michigan Supreme Court says it will let a lower-court ruling stand and not review whether an insurer has standing to challenge a medical clinic's compliance with business incorporation laws as a defense against having to pay no-fault auto claims.
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March 14, 2023
Schlumberger Unit Asks 5th Circ. To Rethink Coverage Loss
Schlumberger Technology Corp. told the Fifth Circuit it incorrectly applied Texas law when it relieved an insurer of the duty to cover costs stemming from a four-vehicle accident, arguing that the appellate court failed to consider Schlumberger's "reasonable" argument, as a district court did.
Expert Analysis
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More Stringent Calif. Claim Law Could Benefit Policyholders
Although a new California statute that imposes additional requirements for policyholder presuit demands — effective Jan. 1 — was ostensibly passed as a bad faith liability shield for insurers, used correctly it may provide a more specific road map for plaintiff recovery, says Shanti Eagle at Farella Braun.
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Yahoo TCPA Coverage Case Protects 'Sophisticated Insureds'
The California Supreme Court's recent decision in Yahoo v. National Union, finding coverage for Telephone Consumer Protection Act claims despite Yahoo's status as a so-called sophisticated insured, highlights why policyholder-friendly rules of construction are not just logical, but necessary, say David Kroeger and Steven Tinetti at Jenner & Block.
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NY Panel's COVID Nursing Home Case Order Spurs Questions
The New York Litigation Coordinating Panel's recent final order to coordinate the resolution of COVID-19 nursing home cases leaves critical parameters for the cases coming under the order undefined, such as time frame and injury, say Christopher Potenza and Elizabeth Adymy at Hurwitz Fine.
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Check This List Twice: 4 Steps To Abate Coverage Concerns
This holiday season give your company the gift of following easy administrative steps to avoid the far-too-common clerical errors that could lead to forfeited insurance coverage, say Vivek Chopra and Mattison Kim at Perkins Coie.
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Lessons On Notice From 7th Circ. Claims-Made Policy Ruling
The Seventh Circuit's recent decision in Hanover Insurance v. R.W. Dunteman contains broad lessons for policyholders — as many claims-made policies include similar aggregation and claims notice provisions as the one at issue — on how to preserve coverage, say Brian Scarbrough and Maura Smyles at Jenner & Block.
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Trends And Opportunities In Canada's Insurance M&A Market
Laurie LaPalme and Derek Levinsky at Dentons discuss the results of a survey regarding Canada's insurance mergers and acquisitions market, and their expectations for the next year in this space — including an increased focus on accident and sickness insurance, and technology-focused assets.
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Breach Cases Hint At Liability Coverage For Mobile Losses
Although federal courts haven't ruled on whether commercial general liability insurance covers companies' revenue losses when customers cannot use their mobile devices, recent cases involving Target and Home Depot payment card data breaches suggest that coverage may be available, says Morgan Churma at Farella Braun.
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Coverage Ruling Confirms Policy Ambiguities Favor Insureds
A recent Georgia federal court decision, Penn-America Insurance v. VE Shadowood, finding for the insured on a policy containing conflicting endorsements, underscores that coverage cannot be defeated by contradictory terms when policies include coverage extensions, say Shaun Crosner and Tae Andrews at Pasich.
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Capturing Insurance Coverage For Climate Change Suits
As municipalities increasingly file suits seeking damages from oil companies in connection with climate change, the companies should consider filing actions to forestall insurer denials of commercial general liability coverage based on theories of novelty or inapplicable pollution exclusions, say attorneys at Haynes and Boone.
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After Climate Rulings, Insurers May Go On Coverage Offense
As climate change lawsuits progress, coverage litigation quickly follows — as evidenced by two recently filed suits, Aloha Petroleum v. National Union Fire Insurance and Everest Premier Insurance v. Gulf Oil — and insurers will likely become more proactive in seeking to limit their exposure, say Jose Umbert and Hernan Cipriotti at Zelle.
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What NJ Insurance Disclosure Law Could Mean For Litigation
Thomas Wester and Christian Cavallo at Goldberg Segalla discuss the potential presuit negotiation and litigation implications of a recently enacted New Jersey law requiring automobile insurers to disclose policy limits before the start of a lawsuit, aimed at promoting claim settlement.
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The Lawyer Personalities That Make Up Joint Interest Groups
As multiparty litigation rises and forces competing law firms to work together, George Reede at Zelle looks at the different personalities — from tactful synthesizers to misguided Don Quixotes — that often make up joint representation groups, and how lawyers can overcome the tensions in these and other team settings.
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NJ High Court Ruling Doesn't Negate Insurer Duty To Defend
The New Jersey Supreme Court's decision in Norman v. Admiral Insurance, finding a narrow exception to the duty to defend, doesn't allow insurers to skip out on their litigation defense obligations, say Eric Jesse and Seth Fiur at Lowenstein Sandler.