Specialty Lines

  • August 02, 2021

    Insurers Avoid Covering $177M Award To Jarden Stockholders

    A primary insurer and five excess insurers don't have to cover Jarden LLC for a $177 million award in an appraisal proceeding brought by dissenting stockholders to its 2016 merger with Newell Rubbermaid Inc., a Delaware state judge ruled.

  • July 29, 2021

    Insurer Says Ill. Produce Store's Policy Blocks BIPA Coverage

    Philadelphia Indemnity Insurance Co. filed suit Thursday asking a federal judge to declare it has no duty to defend two Illinois produce markets against underlying claims that their time-tracking practices violated a former employee's biometric privacy rights.

  • July 27, 2021

    Billabong Parent Co. Sues Insurer For Ransomware Coverage

    As a sportswear company was dealing with a ransomware attack demanding about $25 million in bitcoin payments to unlock its systems, Great American Insurance Co. was dragging its feet during the ordeal, the company alleged in a new lawsuit.

  • July 26, 2021

    Policyholders' Hack Coverage Hopes Surge With Landry's Win

    The Fifth Circuit's ruling that an insurer must defend a hospitality company in a $20 million data breach suit brought by JPMorgan Chase Bank's payment processing arm was a booster shot for policyholders seeking coverage for similar breaches under commercial general liability policies.

  • July 23, 2021

    Insurer Fights 5th Circ. Revival Of $6M Phishing Coverage Suit

    An AIG unit told the Fifth Circuit on Friday that real estate software company RealPage isn't entitled to coverage for a $6 million loss in a 2018 phishing scam, saying the software company wasn't holding the money when it was stolen.

  • July 22, 2021

    Hoguet Newman Adds Ex-Schlam Stone Insurance Atty In NY

    Hoguet Newman Regal & Kenney LLP is beefing up its insurance recovery practice with the addition of a longtime insurance attorney from Schlam Stone & Dolan LLP, the firm said.

  • July 21, 2021

    Nationwide Unit Beats Bad-Faith Claim In D&O Coverage Fight

    A Nationwide unit didn't act in bad faith when it denied coverage to a manager of a Colorado restaurant venture in a bankruptcy dispute, a New York federal court has found, saying the insurer had adequate reasons to believe the manager was not insured under its policy. 

  • July 21, 2021

    5th Circ. Says Insurer Must Defend $20M Data Hack Suit

    The Fifth Circuit on Wednesday reversed a ruling that Landry's Inc.'s insurer could escape its duty to defend the Houston-based hospitality chain in a $20 million data hack dispute with JPMorgan Chase Bank, finding the policy's definition of publication can include making credit card information generally available.

  • July 19, 2021

    Insurer Aims To Duck Coverage For Stolen Reuters Computers

    The Philadelphia Indemnity Insurance Co. told a New Jersey federal court that it isn't obligated to pay an information technology staffing business for the cost of hundreds of laptops stolen by an employee from Thomson Reuters, saying the media company legally owned the computers.

  • July 15, 2021

    XL Insurance Can Recoup $1M From AIG Unit In D&O Dispute

    XL Specialty Insurance Co. can recoup from AIG Specialty Insurance Co. $1 million in excess coverage that XL paid to defend and settle a loan dispute, a California federal judge has ruled, saying an AIG policy applied to the defense costs of directors involved in the dispute.

  • July 15, 2021

    No Bodily Injury In BIPA Suit Against Ill. Caterer, Insurer Says

    Union Insurance Co. told an Illinois federal judge that it shouldn't have to defend a catering company accused of violating the state's Biometric Information Privacy Act because no bodily injury was alleged.

  • July 15, 2021

    Insurer Asks 7th Circ. To Back Win In Knockoff Trailer Dispute

    A trailer maker's insurer told the Seventh Circuit that its win in a coverage dispute over the sale of an alleged knockoff pop-up trailer should stand because allegations in the underlying suit don't involve trade dress infringement.

  • July 14, 2021

    Insurer Wants Out Of Assisted Living Facility's BIPA Suit

    Church Mutual Insurance Co. told an Illinois federal judge Wednesday that its $7 million policies do not cover an assisted living facility in a proposed class action alleging violation of biometric privacy law, saying the policies' exclusions bar coverage.

  • July 14, 2021

    Doormaker Hits Insurers With $10M Suit For Class Settlement

    A North Carolina doormaker is suing its insurers in federal court for $10 million in coverage for the settlement and cost of an underlying investor class action that accused the company of manipulating its stock price by concealing a $76 million liability to a competitor.

  • July 13, 2021

    Pharma Co. Asks 9th Circ. To Revive Opioid Coverage Dispute

    A California pharmaceutical company asked the Ninth Circuit to revive a directors and officers coverage dispute, saying its insurer misapplied a goods and products exclusion to avoid covering an investigation into the company's sales and marketing practices.

  • July 08, 2021

    Insurer Says Atty-Client Sexual Encounter Voids Firm's Policy

    Berkley Assurance Co. is suing a Colorado civil litigation attorney and his firm to get out of a professional liability insurance policy, saying they didn't disclose a sexual relationship between the lawyer and one of his clients in the firm's insurance application.

  • July 08, 2021

    6th Circ. Affirms Arch's Ruling Over Criminal Coal Dust Claims

    Arch Insurance Co. doesn't have to cover six former coal company employees indicted for conspiring to submit fraudulent coal dust samples to regulators, the Sixth Circuit ruled Wednesday, finding a pollution exclusion in the company's policy absolves the insurer of any obligations.

  • July 08, 2021

    PE Firm On Its Own In Fraud Row, Great American Says

    A private equity firm facing accusations that it tinkered with the books of a company it was selling can't tap its insurance policy to pay for its defense, Great American E&S Insurance Co. told a California federal court Wednesday.

  • July 07, 2021

    Calif. HOA Says Insurer Wrongly Yanked Policy

    A California homeowners association said its insurer shouldn't have been allowed to rescind its policy over a letter from the state water board, arguing that the letter was just a notice that wasn't worth mentioning during its insurance renewal process.

  • July 07, 2021

    Education Co. Says Insurer Owes Coverage In FTC Probe

    An online financial education company has sued Axis Insurance Co. in California federal court, alleging it suffered more than $100 million in damages after the insurer wrongfully refused to cover it in an underlying Federal Trade Commission investigation and action.

  • July 06, 2021

    AIG Must Defend Ex-Military Contractors In Acquisition Row

    A New York federal judge has ruled that an AIG unit must defend the owners of a military contracting firm against claims by GardaWorld Corp, saying the former directors acted as executives instead of shareholders of the company.

  • July 02, 2021

    Insurance Cases To Watch In The 2nd Half Of 2021

    Courts have returned to normalcy following a year dominated by COVID-19 closures and restrictions, and many business interruption suits have now reached the appellate level. Here, Law360 looks at the top insurance cases to watch in the second half of 2021.

  • June 30, 2021

    Calif. Man Indicted In $12M Swiss Annuity Ponzi Scheme

    A Santa Barbara man has been charged with stealing more than $12 million in a Ponzi scheme from elderly investors who thought they were purchasing annuities in Swiss insurance companies, according to an indictment handed up in California federal court.

  • June 30, 2021

    Cyberattack Class Suits Have Unpredictable Insurance Impact

    Companies crippled by cyberattacks often face hefty costs to manage the fallout, but subsequent class actions over compromised data can have particularly unpredictable financial impacts on these companies and their insurers, according to legal experts.

  • June 30, 2021

    Carolina Casualty Ordered To Pay $17M Arbitration Award

    A Florida panel on Tuesday said Carolina Casualty Insurance Co. is on the hook for a bankrupt medical device distributor's $17 million arbitration award against its policyholder, finding that a breach of contract exclusion does not bar coverage.

Expert Analysis

  • Insurance Brokers Should Expect Wave Of E&O Claims

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    Policyholders' unsuccessful COVID-19 business interruption suits and the pandemic-related move to remote work will likely result in a plethora of errors and omissions claims brought against insurance agents and brokers, as evidenced by recently filed cases, says Peter Biging at Goldberg Segalla.

  • What SPAC Litigation Trends Could Mean For D&O Insurance

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    A look at the last two and a half years of securities litigation related to special purpose acquisition companies suggests that directors and officers insurance policyholders should prepare to confront coverage issues, particularly given the hardening D&O insurance market and the anticipated increase in regulatory oversight, say Huiyi Chen and David Kroeger at Jenner & Block.

  • The Need For Insurance Options To Protect NFTs

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    Until insurance companies offer crucial protections to cover the unique risks in the nonfungible token market, NFT owners, buyers, marketplaces, wallet providers and server farms remain exposed to potentially significant hazards, say attorneys at Pillsbury.

  • An Insurer's Guide To Policyholder Bankruptcy

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    Given the increased likelihood of policyholders filing bankruptcy petitions in the wake of the pandemic, insurance professionals must be aware of five basic principles when dealing with an insured in bankruptcy, says Eric Fitzgerald at Goldberg Segalla.

  • COVID Rulings May Support Ransomware Insurance Denials

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    A recent spate of pandemic-related insurance decisions — where federal courts found that a temporary inability to use property doesn't qualify as physical loss or damage for coverage purposes — may be used as favorable precedent by cyber insurers denying ransomware loss claims for temporary inability to access data, say Thomas Caswell and Peter Kelly Golfman at Zelle.

  • Why Legacy Insurance May Not Protect Adopters Of Bitcoin

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    Evidenced by El Salvador's adoption of the Bitcoin standard this week, there is an emerging need for insurance products to cover the risk of owning and holding the digital asset, as it may not fall into the protected categories in legacy insurance products, say attorneys at Mound Cotton.

  • Ill. BIPA Ruling Marks Critical Win For Silent Cyber Coverage

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    The Illinois Supreme Court's recent decision in West Bend Mutual v. Krishna Schaumburg Tan, confirming that commercial general liability policies do not have to include specific language to cover claims under the Biometric Information Privacy Act, represents a critical victory for policyholders, but leaves unresolved issues in the battle over BIPA coverage, says Tae Andrews at Miller Friel.

  • New Ruling Means Ky. Insurers May Rely On Notice Deadlines

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    The Kentucky Court of Appeals recently resolved a matter of first impression in Darwin National v. Kentucky State University, deciding that an insurance claim made outside the specified 90-day reporting period was late and thus properly recognizing that the reporting requirement in a claims-made-and-reported policy reflects a bargained-for condition to coverage, say Kristi Nolley and Lindsey Dean at BatesCarey.

  • How D&O Coverage Fits Into Diversity Claim Mitigation

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    As companies face a shift in the directors and officers insurance market following a spate of recent shareholder suits over lack of diversity in corporate leadership, executive teams should review D&O policy coverage while implementing diversity initiatives that will effect meaningful, long-term change, say Natasha Romagnoli and Hannah Ahn at Blank Rome.

  • D&O Insurance Implications From Tesla's Stock Drop Suit

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    A recent shareholder stock drop lawsuit against Tesla showcases the legal perils that can follow companies' social media missteps, and highlights the importance of directors and officers liability insurance in the current age of political polarization, says Tae Andrews at Miller Friel.

  • Tips For Managing Cybersecurity And Privacy Risks In M&A

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    Cybersecurity and privacy issues in M&A transactions should no longer be an afterthought and should be treated on equal footing as other parts of the due diligence process, like tax, real estate and intellectual property, say David Kessler and Anna Rudawski at Norton Rose.

  • 6 D&O Provisions To Consider When Buying SPAC Insurance

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    As directors and officers insurance strives to keep up with the unique risk profiles of special purpose acquisition companies, D&O policy language distinctions can make a critical difference in whether claims against SPACs are covered, says Stephen Raptis at Haynes and Boone.

  • Del. Rulings Guide On D&O Insurance For Corporate Fraud

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    Two recent Delaware decisions chart a helpful path for policyholders seeking directors and officers coverage for incidents involving fraudulent conduct, and also demonstrate the flexibility afforded by choice-of-law clauses, say Brian Scarbrough and Eric Fleddermann at Jenner & Block.