General Liability
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June 27, 2024
Insurer Gets Early Win In $2.2M Texas Assault Coverage Suit
A bar's insurer has no duty to cover a $3.2 million personal injury judgment beyond the insurer's $1 million policy limit, a Texas federal court ruled, rejecting arguments from the bar, its owner and underlying plaintiffs that the insurer unreasonably denied the plaintiffs' presuit settlement demand.
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June 26, 2024
Travelers Nabs Partial Win In Asbestos Coverage Dispute
A Travelers unit only has a duty to indemnify but not defend a drywall and paint company that faces several underlying asbestos injury lawsuits, a Texas federal court ruled, rejecting the company's reading of "not covered" in its umbrella policy providing excess coverage.
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June 25, 2024
1 Of 2 Carriers Off Hook For $8M Garage Damage Verdict
An insurer for a now-defunct maintenance company has no duty to cover an $8 million jury verdict it faces over parking garage damage, an Indiana federal court ruled, adding that whether a separate insurer for the company must foot the bill can not yet be determined.
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June 24, 2024
Lloyd's Seeks To Avoid Coverage For Beach Umbrella Death
Certain underwriters at Lloyd's, London told a South Carolina federal court Monday they should have no coverage obligations to a vacation rental owner over a wrongful death suit alleging that a woman was impaled by a "wind-driven" beach umbrella.
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June 24, 2024
Nev. Restaurant Co.'s COVID Suit Is Kept Alive
A group of insurers can't avoid a restaurant holding company's bid for coverage of COVID-19-related losses, a Nevada state court ruled, finding that the state supreme court's ruling on the subject didn't control the action because of an infectious disease endorsement in the company's policies.
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June 24, 2024
No Coverage For $3M Logging Injury Verdict, 4th Circ. Affirms
The Fourth Circuit has affirmed that an insurer doesn't have to cover a $3 million jury verdict over a man's logging injuries, finding that a North Carolina federal court correctly decided that a broad worker injury exclusion was applicable.
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June 24, 2024
Insurer Says Paralympic Org Not Covered In Sex Abuse Row
The U.S. Olympic & Paralympic Committee should have no coverage in a lawsuit accusing it of negligence after a Paralympic swimmer said he was sexually abused by a teammate, an insurer for the committee told a Colorado federal court, citing an "absolute abuse or molestation" exclusion.
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June 21, 2024
No Coverage For La Quinta Sex Assault Claims, Insurer Says
The insurer of a La Quinta Inn & Suites location told a Texas federal court it owes no defense or indemnity in an underlying state court lawsuit alleging the hotel negligently failed to prevent the sexual assault of a minor on its property.
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June 21, 2024
Mich. Appeals Panel Rescinds Coverage For Auto Policy Fraud
A Michigan appeals court panel said a trial court was wrong for not rescinding auto insurance coverage held by a woman who made misstatements on her insurance application before she was injured in an accident.
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June 21, 2024
Wolverine Inks Deal To End PFAS Coverage Fight
Footwear company Wolverine and one of its insurers have told a Michigan federal judge that they have reached a settlement in a coverage dispute over underlying chemical exposure actions, saying they "have agreed to a signed, confidential term sheet to resolve this action."
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June 21, 2024
Mich. Panel Says Default Judgment Covered Per No-Fault Law
A Progressive unit must pay a $250,000 default judgment in a motor vehicle negligence case even though the insurer said its policyholder failed to cooperate, a Michigan appeals court ruled, finding a state Supreme Court decision predating Michigan's no-fault insurance reform was still applicable.
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June 20, 2024
'AI Washing' Actions Mark New Frontier In Coverage Disputes
Recent regulatory actions and shareholder suits over alleged misrepresentations of artificial intelligence use, or what is known as AI washing, may be the first wave of a surge of claims that will hit professional and management liability insurance lines.
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June 20, 2024
Attys See Huge Financial, Legal Stakes In Hawaii Climate Suit
A novel Hawaiian case over whether an AIG insurer needs to pay a Sunoco subsidiary’s legal fees to beat claims it contributed to climate change has huge stakes for carriers and policyholders as they increasingly tussle over the cost of Earth-warming emissions.
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June 20, 2024
Calif. Justices Give Insureds Certainty On Policy Exhaustion
The California Supreme Court's clarification that an insured can look to first-layer excess policies as soon as primary coverage for that period is exhausted has favorable implications for policyholders, experts say, yet questions remain as a lower court weighs whether excess insurers must contribute to a primary insurer's coverage.
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June 20, 2024
Insurance Litigation Week In Review
The California Supreme Court opened the door to excess coverage for a policyholder's asbestos injury suits, the Hawaii Supreme Court questioned whether reckless behavior could trigger a Sunoco subsidiary's liability coverage, and the Second Circuit affirmed a Liberty Mutual unit's coverage win in a family shareholder dispute. Here, Law360 takes a look at the past week's top insurance news.
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June 20, 2024
Novel Vermont Polluter Law Raises Insurance Liability Issues
A new Vermont law requiring fossil fuel companies to fund projects ameliorating the negative effects of climate change could raise questions about what constitutes a covered occurrence and how pollution exclusions may apply, while also igniting choice-of-law disputes, experts say.
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June 20, 2024
Insurer Hit With Coverage Suit Over Ohio Grocery Shooting
Pittsburgh-based Giant Eagle Inc. is claiming that a security contractor's insurer, Philadelphia Indemnity Insurance Co., has refused to cover its defense costs in a lawsuit over a shooting at a Cleveland, Ohio, store, and was trying to get the grocer to drop its third-party claims against the contractor.
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June 20, 2024
2nd Circ. Affirms AIG's Win In Ex-Atty's Retaliation Suit
A former legal executive's retaliation lawsuit against American International Group Inc. has fizzled out as the Second Circuit on Thursday upheld an earlier ruling that found he was not fired for blowing the whistle on alleged fraud.
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June 20, 2024
Nationwide Wins Mich. Combined Filing Tax Fight On Appeal
Nationwide entities can file as a unitary business in Michigan to share tax credits across their group members, the state Court of Appeals ruled Thursday, overturning a state tax tribunal decision that said insurance companies were required to file separate returns.
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June 18, 2024
'Reckless' Behavior Centered In Climate Coverage Suit Args
Attorneys for a Sunoco subsidiary and AIG offered sharply differing views to Hawaii's top court Tuesday in oral arguments over whether reckless behavior would trigger the oil company's liability coverage in a novel suit over coverage for underlying climate change claims.
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June 18, 2024
Condo's Historic Location Doesn't Bar Bombing Coverage
The insurer for a Nashville, Tennessee, condominium owners association cannot use a historic structures exclusion to dodge covering the repair costs associated with damage caused by a bombing on Christmas Day 2020, a federal court ruled Tuesday.
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June 18, 2024
AIG Unit Says Exclusions Bar Pet Supply Co.'s BIPA Claims
An AIG unit has told a Michigan federal court a pet supply store isn't owed defense for an underlying class action brought by employees alleging the store violated the Illinois Biometric Information Privacy Act, maintaining that a "recording and distribution" exclusion and "employment-related practices exclusion" were triggered.
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June 18, 2024
Life Insurance Fraudster Deserves Tax Penalties, 7th Circ. Told
The IRS urged the Seventh Circuit to maintain nearly $400,000 in fraud penalties assessed against an Illinois man who pled guilty to falsifying his tax returns as part of a scheme to poison his wife and collect on a $20 million life insurance policy.
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June 18, 2024
Insurers Must Keep Defending Heating Oil Co. In Class Suit
Two Crum & Forster units must continue defending a heating oil company and several executives in a class action claiming the company provided oil with elevated levels of biodiesel that caused property damage, a Massachusetts federal court ruled, saying the policies' "failure to supply" provisions do not limit or exclude coverage.
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June 17, 2024
Excess Insurers May Need To Pay In Kaiser Asbestos Dispute
A policyholder can tap into first-layer excess policies as soon as the primary coverage for that period is exhausted, the California Supreme Court ruled, potentially implicating several first-level excess insurers to contribute to coverage for underlying asbestos exposure claims against Kaiser Cement and Gypsum Corp.
Expert Analysis
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Key Provisions In Florida's New Insurer Accountability Act
Florida's recent bipartisan Insurer Accountability Act introduces a range of new obligations for insurance companies and regulatory bodies to strengthen consumer protection, and other states may follow suit should it prove successful at ensuring a reliable insurance market, say Jan Larson and Benjamin Malings at Jenner & Block.
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Next Steps For Insurers After Ky. OKs Early 3rd-Party Claims
While insurers in Kentucky may face more statutory bad faith claims after a recent state Supreme Court decision clarified that third parties may bring these torts even before determination of coverage is finalized, insurers can adopt a variety of approaches to reduce their exposure, says Jason Reichlyn at Dykema Gossett.
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Insurers, Prepare For Large Exposures From PFAS Claims
With thousands of lawsuits concerning per- and polyfluoroalkyl substances pending across the country, several large settlements already reached, and both regulators and the plaintiffs bar increasingly focusing on PFAS, it is becoming clear that these "forever chemicals" present major exposures to insurers and their policyholders, say Scott Seaman and Jennifer Arnold at Hinshaw.
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What To Know About Duty To Settle Insurance Claims In Texas
Laura Grabouski of Holden Litigation examines the parameters of Texas insurers' duty to settle liability claims within the limits of the primary policy, as knowledge of the requirements — and the potential exposure from insureds, judgment creditors or excess creditors — can pay dividends in the era of nuclear verdicts.
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Ga. Mirror-Image Rule Makes Settlements Fraught For Insurers
The Georgia Court of Appeals' recent decision in Pierce v. Banks shows how strictly Georgia courts will enforce the rule that an insurer's response to a settlement demand must be a mirror image of the demand — and is a reminder that parties must exercise caution when accepting such a demand, says Seth Friedman at Lewis Brisbois.
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Insurance Ruling Shows Notice Letters Need Close Review
A Texas appeals court's recent disapproval of an insured’s presuit notice letter to Westchester Surplus Lines Insurance — which refused to quantify an alleged injury — should prompt courts to probe deeper when considering whether such a letter gives the insurer the information needed to resolve the claim or make a settlement offer, say Jennifer Martin and Timothy Delabar at Wilson Elser.
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11th Circ. Ruling May Impede Insurers' Defense Cost Recoup
The Eleventh Circuit's recent Continental Casualty v. Winder Laboratories ruling that insurers cannot obtain reimbursement of defense costs from their insureds where the policy itself does not require such reimbursement is likely to be cited as persuasive authority in Georgia and other states without clear precedent on the issue, say Christy Maple and Robert Whitney at Phelps Dunbar.
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Groundbreaking Nev. Law May Alter Insurance Landscape
The Nevada Legislature recently passed a law prohibiting insurers from issuing liability policies with eroding limits provisions that has the potential to create massive shifts in the marketplace — and specifically in areas like professional liability, cyber, and directors and officers insurance, says Will Bennett at Saxe Doernberger.
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Insurance Insights From 5th Circ. Blue Bell Coverage Ruling
The Fifth Circuit's recent ruling that denied Blue Bell insurance coverage for the defense costs incurred from a shareholder lawsuit underscores the importance of coordination of different coverages and policies across programs, and the potential perils of seeking recovery for losses under nontraditional policies, say Geoffrey Fehling and Casey Coffey at Hunton.
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The Legal Issues Flying Around The Evolving Drone Market
As the number of drone registrations is expected to more than double over the next three years, the industry faces new risks and considerations related to privacy, Fourth Amendment, criminal, evidentiary, First Amendment, and insurance litigation, say attorneys at Covington.
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What The ESG Divide Means For Insurers And Beyond
The debate around ESG is becoming increasingly polarized, with some states passing legislation that prohibits the use of ESG factors and others advancing affirmative legislation, highlighting the importance for insurers and other companies to understand this complex legal landscape, say Scott Seaman and Bessie Daschbach at Hinshaw.
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Consider Self-Help To Trigger Additional-Insured Status
A New Jersey federal court recently affirmed that owners and contractors can use self-help by filing third-party claims for indemnification against subcontractors, triggering coverage from a subcontractor's insurance by asserting that an employee's injuries resulted from the subcontractor's fault or the employee's own negligence, say Allen Wolff and Ethan Middlebrooks at Anderson Kill.
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Why 7th Circ.'s BIPA Insurance Analysis Is Significant
The Seventh Circuit's ruling in Citizens v. Wynndalco is the first appellate opinion on one of the three major exclusions raised by insurers faced with a duty to defend alleged violations of the Biometric Information Privacy Act and could foreshadow future BIPA opinions favoring policyholders, say John Vishneski and Adrienne Kitchen at Reed Smith.