Property
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February 14, 2024
$600K In Dairy Queen Fire Damages Not Covered, Court Told
A Dairy Queen franchisee is attempting to overstep boundaries by asking for more coverage than the policy provides, its insurer told a Texas federal court, saying the restaurant's claim stems from the business's personal property damage from a fire at a leased location.
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February 14, 2024
Homebuilder, Insurer Settle Coverage Suit Over Fatal Fire
A builder accused of causing the deaths of two people by failing to install working smoke detectors in a home it constructed has settled its dispute with an insurer over $1 million in coverage for underlying litigation related to the deaths in California federal court.
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February 13, 2024
Insurer, Apartment Owner Agree To End Hail Damage Dispute
The owner of a 12-building apartment complex near Texas A&M University has agreed to end a dispute in Texas federal court with its insurer over $4 million in hail damage coverage.
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February 13, 2024
11th Circ. Boots Insurer's Appraisal Order Challenge
The Eleventh Circuit rejected a Zurich unit's bid to escape a Florida district court's order compelling it into appraisal proceedings with a Pensacola hotel owner, finding Tuesday the appellate court had no power to review a nonfinal order.
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February 13, 2024
$3.3M Loss Of Stolen Nokia Phones Not Covered, Insurer Says
An insurer told a Florida federal court Tuesday it doesn't owe coverage to a trucking company for an underlying lawsuit seeking over $3.3 million for a shipment of Nokia cellphones stolen during transport, arguing that the phones weren't in the company's custody at the time of the loss.
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February 13, 2024
Progressive Unit Sued Over Policy Nixed Before House Fire
A Washington married couple sued a Progressive unit over up to $750,000 in coverage for losses stemming from a house fire, claiming the insurer unfairly canceled their policy before the blaze without properly notifying them in accordance with state law.
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February 13, 2024
Insurer Says Fire Co. Owes $3.7M For Hotel Water Damage
A fire protection and security services company must pay more than $3.7 million for water damage at an Ohio hotel, a Liberty Mutual unit told an Ohio federal court, arguing that the damage was caused by the company's negligence in maintaining a fire sprinkler system.
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February 13, 2024
Fla. Condo Wants Full Coverage For $1.7M Hurricane Damage
A condo association told a Florida federal court that its National Flood Insurance Program insurer has refused to fully cover about $1.7 million in flood and storm damage in 2022 from Hurricane Ian.
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February 12, 2024
Insurer Says No Coverage For Idaho Murderer And Family
A mentally ill suspected cannibal and his wealthy mining family do not have insurance coverage for a wrongful death suit brought on behalf of a murdered, mutilated groundskeeper and his family, the insurer told an Idaho federal court.
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February 12, 2024
NM Dry Cleaner Says Policy Covers Chemical Cleanup Costs
The property owner of a New Mexico dry cleaner told a federal court Monday that State Farm has refused to defend it against an investigation and demand for remediation from the state's environmental protection agency after the discovery of chlorinated solvent contamination in its property's soil.
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February 12, 2024
8th Circ. Affirms Insurer Win In Mo. COVID-19 Coverage Row
The Eighth Circuit affirmed an insurer's win against a Missouri city that sought coverage for sales tax revenue losses resulting from pandemic-related shutdowns, saying Monday that the city's interpretation of a policy endorsement is not reasonable.
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February 12, 2024
Three-State Test Critical To Evaluating Carrier Climate Risk
An analysis finding that insurers' investment portfolios are at risk of losing billions of dollars under delayed climate-transition plans is an important step to fully understanding how well carriers' business activities are aligned with climate goals, experts say.
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February 12, 2024
$1M Alcohol Spill Coverage Suit Not Federal Case, Co. Says
A packaging company being sued by its insurer after expired alcoholic beverages seeped into a warehouse floor, causing more than $1 million in damage, told a Tennessee federal court it should toss the suit because it lacked jurisdiction.
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February 12, 2024
Travelers Says No Coverage For $1.8M Pollution Cleanup
A Travelers unit said it has no duty to reimburse an oil and gas company over $1.8 million for costs it incurred cleaning up 1,600 barrels of spilled brine water, telling a Pennsylvania federal court the company failed to meet its policies' reporting requirements.
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February 09, 2024
State Farm Defends Pricing Setting Insured Says Shorted Her
State Farm Fire and Casualty Co. renewed its bid to toss a Mississippi homeowner's proposed class action over allegations it intentionally underpaid fire damage claims, arguing it was correct to use a "new construction" setting in its pricing software that led to lower recoverable labor costs.
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February 09, 2024
2nd Circ. Affirms Starr Can't Sue To Defend Coverage Denial
The Second Circuit on Friday refused to revive Starr Indemnity & Liability Co.'s suit, which a district court had concluded the insurer used to defend its decision to deny a clothing company coverage for stolen and water-damaged goods.
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February 09, 2024
Ala. Insurer Gets Hurricane Sally Repair Coverage Suit Cut
A Chubb unit successfully trimmed bad faith allegations from a lawsuit seeking coverage for a condominium complex that was damaged by Hurricane Sally in 2020, as an Alabama federal judge found that the condo never showed that its insurance claims were denied by the insurer.
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February 09, 2024
Insurer Settles $1.7M Fluorescent Sign Fire Damage Suit
United Fire & Casualty Co. reached a settlement in its $1.7 million suit against a Texas sign-making company, resolving its bid to recover funds paid to a bed and breakfast after a fluorescent sign caught fire and damaged the property.
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February 09, 2024
Bad Faith Claim Rejected Again In Hurricane Ida Coverage Suit
A Louisiana federal judge again refused to find that the insurer of a suburban New Orleans commercial property acted in bad faith in denying to cover $220,000 in damage Hurricane Ida allegedly caused in 2021.
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February 09, 2024
Court Says 'Catastrophe' Applies In COVID Reinsurance Cases
A London court has allowed insurers to make claims under reinsurance contracts for business interruption losses claimed during the COVID-19 pandemic, saying that the outbreak of an infectious disease constitutes a "catastrophe" under the policy wording.
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February 08, 2024
Texas Adjuster No Longer To Pretend To Be Lloyd's Of London
An insurance adjuster who hijacked the good name of British underwriting giant Lloyd's of London after blaming it for lost compensation agreed in Texas federal court to shut down businesses he opened in its name.
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February 08, 2024
8th Circ. Won't Revive Renter's Fire Loss Coverage Fight
The Eighth Circuit refused Thursday to revive an Arkansas renter's fire coverage suit against her insurer, finding a district court was correct to permanently dismiss the case over what it said were willful failures to follow its orders and properly participate in discovery.
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February 08, 2024
Insurance Orgs. Say Bill Would Prevent CFPB Overreach
Bipartisan legislation seeking to clarify the powers of the Consumer Financial Protection Bureau has drawn support from insurance regulators and industry trade groups who say the bureau has encroached upon state-based insurance regulation despite clear statutory limitations.
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February 08, 2024
Esurance Pockets Totaled Vehicles' Sales Tax, Suit Says
Auto insurer Esurance stole from customers by routinely failing to cover sales tax on totaled vehicles, a policyholder said in a proposed class action filed in New York federal court.
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February 08, 2024
Apt. Owners Can't Avoid Arbitrating Ida Damage, Insurers Say
Seven New Orleans-area property owners must submit their Hurricane Ida damage claims to arbitration proceedings regardless of whether one of two foreign conventions applies to the case over the other, a group of 10 insurers told a Louisiana federal court.
Expert Analysis
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Why Legacy Insurance May Not Protect Adopters Of Bitcoin
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.
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Ill. BIPA Ruling Marks Critical Win For Silent Cyber Coverage
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.
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NY Badly Needs Bad Faith Bill To Hold Insurers Accountable
Contrary to a recent Law360 guest article that contends New York state's insurance reform bill would unfairly tip the scales against insurers, Edward Steinberg at the New York State Trial Lawyers Association argues the law is necessary to hold insurers accountable for acting in bad faith, and would protect policyholders and injured parties alike.
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Insurers Have Cause For Optimism In Labor Cost Rulings
Recent decisions from the high courts of South Carolina and North Carolina — holding that embedded labor costs can be depreciated from the replacement cost of property — bolster insurers’ moderate edge in these disputes and point to important implications for both insureds and insurers, says Richard Mason at MasonADR.
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Predictions On Pandemic's Lasting Impact On Legal Education
The pandemic accelerated the pace of technological change for legal education, and some of the changes to how law school courses are taught and on-campus interviews are conducted may be here to stay, says Leonard Baynes at the University of Houston.
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Firms Should Use Surveys To Make Smart Legal Tech Choices
The utility of legal technology innovations may be limited without clear data and objectives from the outset, but targeted surveys can provide specific insights that enable law firms to adopt the most appropriate and efficient tech solutions, says Tim Scott at Frogslayer.
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Don't Forget Due Diligence In Race For Lateral Associate Hires
Amid high demand for associates and aggressive competition to attract talent, law firms should take three key steps to conduct meaningful prehire due diligence and safeguard against lateral hiring mistakes that can hurt their revenue and reputation, says Michael Ellenhorn at Decipher.
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Insurance Could Be A Solution To Microchip Shortage Losses
To the extent that companies experiencing lost income from the global microchip shortage have contingent business interruption or dependent property coverage and can trace their impaired revenues to physical loss or damage to a supplier, there may be some potential for insurance recovery, says Micah Skidmore at Haynes and Boone.
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5 Steps For Law Firms Rethinking Flexible Work Post-COVID
A flexible work environment will be key to recruiting and retention efforts post-pandemic, so law firms must develop comprehensive policies that solidify expectations and boundaries on accommodations such as flextime, remote work and reduced hours, says Manar Morales at the Diversity & Flexibility Alliance.
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NY Bad Faith Bill Would Tip The Scales Against Insurers
A recently introduced New York bill proposes a statutory cause of action for insurance company bad faith when legal remedies already exist, which may dangerously upset the balance between insurers and policyholders, say attorneys at Hurwitz & Fine.
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Judge's Rebuke Of Mass. AG Has Lessons For All Attorneys
A Massachusetts federal judge’s recent rebuke of the state Attorney General’s Office for refusing to respond to discovery requests in Alliance for Automotive Innovation v. Healey highlights six important considerations for attorneys who want to avoid the dreaded benchslap, say Alison Eggers and Dallin Wilson at Seyfarth.
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Make Profitability Management Part Of Your Law Firm Culture
As the legal industry continues to change in the post-pandemic world, law firms should adapt to client demands by constantly measuring and managing the profitability of their services, says Joseph Altonji at LawVision.
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The Pandemic's Bright Spots For Lawyers Who Are Parents
The COVID-19 crisis has allowed lawyers to hone remote advocacy strategies and effectively represent clients with minimal travel — abilities that have benefited working parents and should be utilized long after the pandemic is over, says Chelsea Loughran at Wolf Greenfield.