Specialty Lines

  • December 22, 2022

    Atty Not Covered In Trust Mismanagement Suit, Insurer Says

    An attorney accused of mismanaging a trust fund is not covered for the underlying lawsuit because his damages are for restitution, which is not covered by his "lawyers professional liability" policy, the attorney's insurer told a New Mexico federal court.

  • December 22, 2022

    Bean Oil Manufacturer Pushes For Wastewater Suit Coverage

    A bean oil manufacturer urged a Mississippi federal court Thursday to keep alive its suit seeking coverage under a pollution liability policy, saying the negligent acts alleged in the underlying suit could be classified as accidental, therefore triggering coverage.

  • December 22, 2022

    Insurer Can't Shake Default Coverage Ruling, 9th Circ. Told

    A health care provider urged the Ninth Circuit on Thursday to uphold its default win in a suit seeking coverage for costs incurred in an underlying class action, arguing a Montana federal judge acted reasonably in refusing to let an insurer off the hook for not responding to a complaint.

  • December 22, 2022

    Toy Co. Not Covered For Rapper T.I.'s IP Suit, Insurer Says

    When it comes to coverage of an intellectual property infringement lawsuit by rapper T.I. and his wife, singer-songwriter Tiny Harris, a toy company can't get whatever it likes, the company's insurer told a California federal court.

  • December 22, 2022

    Title Insurer Pays $2.5M To NY Over 'No-Poach' Deals

    One of the nation's top title insurers will pay the state of New York $2.5 million to settle allegations that it entered into illegal "no-poach" agreements with its competitors to not hire each other's employees, the state's attorney general's office announced.

  • December 22, 2022

    Insurer Fights Bid For Repayment Of Lung Transplant Suit

    An insurer told a Texas federal court it's not responsible for fully reimbursing another carrier that paid to cover the suit and settlement over a worker's allegations that he was injured by chemical inhalation while working in a plastics factory, pointing to language of competing endorsements in the policies.

  • December 22, 2022

    Reinsurers Can't Beat Suit Over $844M Plane Crash Settlement

    A London judge on Thursday lifted an anti-suit injunction and allowed a Florida court to move forward on a case over whether reinsurers should be liable to victims of a plane crash that killed most of Brazil's soccer team.

  • December 21, 2022

    Insurer Drops High Court Appeal Over Exxon's $25M Award

    An insurer that challenged ExxonMobil's $25 million arbitration award to cover losses from a groundwater contamination suit has agreed to drop its appeal to the U.S. Supreme Court, according to a Wednesday docket entry.

  • December 21, 2022

    2nd Circ. Preserves Insurer's Win In 2 Construction Cases

    An insurer does not owe coverage to a general contractor for a pair of lawsuits filed in Texas over the alleged mismanagement of the construction of a luxury hotel in Austin and a new building at Houston Methodist Hospital, the Second Circuit said Wednesday.

  • December 21, 2022

    No Coverage For Cattle Co. In Crash Suit, 5th Circ. Says

    A cattle company cannot get coverage for an employee's personal injury lawsuit arising from a truck crash, the Fifth Circuit said Wednesday, affirming that the company's insurance policy excludes coverage for its employees.

  • December 21, 2022

    Drug Developer Not Covered For SEC Probe, Insurers Say

    A drug development company born out of a merger doesn't have coverage for costs incurred from responding to U.S. Securities and Exchange Commission subpoenas, insurers told a California federal court, arguing that the new company doesn't qualify as a named insured under the prior firm's directors and officers policy.

  • December 21, 2022

    Fish Co. Urges 9th Circ. To Redo Coverage Ruling

    A seafood wholesaler asked the Ninth Circuit to reconsider a ruling that it isn't entitled to insurance coverage for fishing season losses because it failed to cooperate with a claim investigation, arguing its policy didn't explicitly require compliance with insurers' requests for supporting documents.

  • December 21, 2022

    Insurer Says SoCal Edison Not Covered For LA Wildfire Suits

    Southern California Edison Co. isn't entitled to a defense against more than 20 lawsuits accusing it of negligence in causing the September 2020 Bobcat wildfire, an insurer told a California federal court, arguing that the utility company does not qualify for coverage under its contractor's policy.

  • December 21, 2022

    Insurer Says It's Not Primary For Teacher Suits Coverage

    A Nationwide unit urged the Eleventh Circuit to find that it isn't the primary insurer for several underlying lawsuits against Georgia teachers and school districts, arguing that coverage provided by another insurer should take precedence based on their competing "other insurance" provisions.

  • December 20, 2022

    Treasure Hunter Denied Coverage For $7.5M IP Award

    A Washington federal judge rejected a treasure hunter's request to have an insurer cover a $7.5 million judgment he won against his former business partner in an intellectual property lawsuit over a stalled expedition, finding that the underlying award was not the result of an accidental "occurrence."

  • December 20, 2022

    No Coverage For Bank's $32M Ponzi Scheme Settlement

    A bank is not covered for $32 million it paid to settle a bankruptcy lawsuit alleging it allowed a Ponzi scheme to continue so it could recover its loans to the company running the scheme, an Ohio federal court said.

  • December 20, 2022

    Trucking Co., Driver Not Covered For Crash Suits

    An insurer doesn't have to defend a trucking company or one of its drivers from underlying suits stemming from a multi-vehicle crash, a South Carolina federal judge said, noting that the company's policy only offered "non-trucking" coverage.

  • December 20, 2022

    Blue Cross Unit, Lab Come To Terms On COVID-19 Test Claims

    Blue Cross Blue Shield's Kansas City, Missouri, unit and the COVID-19 testing provider it has been beefing with over the coverage of some $9.7 million in tests have all but finalized a settlement that will end the litigation, they told the court.

  • December 20, 2022

    Insurer Counters Other Carrier For Ransomware Claim Costs

    A Tokio Marine unit hit back at a Liberty Mutual unit's suit seeking reimbursement for what it spent to cover a manufacturer of sheet metal tools for a ransomware attack, telling a California federal court that the other insurer is the one that actually owes additional coverage.

  • December 20, 2022

    Auto Biz, Insurer Settle Wrongful-Repo Coverage Case

    A dispute between an auto repair and towing business and its insurer over coverage of an underlying wrongful repossession suit has been dismissed after the parties reached a settlement, according to filings in Ohio federal court.

  • December 19, 2022

    Guards Accused In $13M Theft Not Employees, Insurer Says

    Security guards accused of participating in the theft of $13 million in computer hardware and software from a company's warehouse don't trigger coverage under a crime policy, the company's insurer told a California federal court, arguing that the guards don't fit the policy's definition of "employee."

  • December 19, 2022

    Insurer Says Staffing Co. Isn't Covered In Injury Dispute

    An insurer doesn't have to cover a staffing agency for claims related to a suit alleging that an employee was injured while working for a produce distributor, the insurer told a Massachusetts federal court, pointing to contractual liability and employer's liability exclusions in the agency's policies.

  • December 19, 2022

    State Farm's $325M Life Insurance Settlement OK'd

    A Missouri federal judge granted preliminary approval on a deal that will see State Farm pay up to $325 million to settle a proposed class action alleging that the insurer was continuing to inflate fees for life insurance policies despite a previous verdict condemning the practice, according to a court order.

  • December 19, 2022

    Texas Law Firm Gets Coverage Suit Sent Back To State Court

    A Texas federal judge has remanded an insurance coverage case back to state court, saying the defendant has not proven its claims that is an Illinois-based company rather than a Texas-based one.

  • December 19, 2022

    Law Firm Hit Coverage Limit For Timeshare Suits, Judge Says

    An insurer doesn't owe any more coverage to a California law firm in suits accusing the firm of engaging in a scheme to entice timeshare owners to breach their contracts, a Florida federal judge said, agreeing with a magistrate judge's report that the firm's insurance policy had been exhausted.

Expert Analysis

  • D&O Coverage Considerations Amid Increasing SEC Scrutiny

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    With all signs pointing to heightened U.S. Securities and Exchange Commission oversight and enforcement, policyholders should be asking four questions to ensure their directors and officers insurance provides the protection they expect and to avoid coverage disputes, say Robin Cohen and Orrie Levy at Cohen Ziffer.

  • Policyholder Best Practices As Cyberattacks Escalate

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    As ransomware attacks increasingly target corporate victims, policyholders should enhance cybersecurity and privacy efforts to avoid regulatory hot water and mitigate the effects of rising insurance premiums and coverage restrictions, say Lee Epstein and Krishna Jani at Flaster Greenberg.

  • Embracing ESG: AIG Counsel Talks SEC Risk Alert

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    As the U.S. Securities and Exchange Commission responds to the changing landscape on environmental, social and corporate governance investing, including with its recent risk alert, it is imperative that the regulator take a measured approach, says Kate Fuentes at AIG.

  • Insurance Commissioner's Agenda: Wis. Tackles Climate Risk

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    Wisconsin Commissioner of Insurance Mark Afable talks about educating consumers on potential climate-risk coverage gaps and mitigation efforts, and encouraging insurers to recognize the latter in underwriting, in the face of increasingly frequent and severe weather disasters.

  • Insurer Considerations For Post-Pandemic Virtual Mediation

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    To determine whether to continue engaging in virtual mediations after the pandemic ends, insurers should weigh the format's challenges against its benefits, including decreased hostility between parties, time and cost, and increased client participation, say Jennifer Gibbs and Amanda Rodriguez at Zelle.

  • Key Considerations For D&O Policy Related-Claims Clauses

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    A California federal court's decision in Stem v. Scottsdale Insurance — which found that multiple claims were subject to a single policy limit under the related-claims provision in a directors and officers insurance policy — highlights areas of consideration, such as policy language and choice of law, for businesses shopping for D&O policies, say attorneys at Hunton.

  • NY Ruling Should Make Counsel More Cautious In Emails

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    A recent New York Appellate Division decision, Philadelphia Insurance v. Kendall, makes it much more likely that a settlement could be effectuated by simple email exchanges without more formal written documentation memorializing all the terms of the settlement, says Christopher Gorman at Abrams Fensterman.

  • 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.