Specialty Lines
-
February 16, 2024
Therapy Co.'s Policy Lie Bars Fraud Coverage, 4th Circ. Says
A defunct child therapy practice is not entitled to coverage for suits accusing one of the practice's employees of pretending to be licensed, the Fourth Circuit affirmed in a published opinion Friday, saying a material misrepresentation in the clinic's insurance applications warrants rescission of the policy.
-
February 15, 2024
Damaged Champagne Cargo Row Can Proceed, Judge Says
A New Jersey federal judge preserved the majority of a $930,000 coverage dispute over a damaged champagne shipment Thursday, denying a logistics company's bid for dismissal while giving an insurer the opportunity to put forth an alternate pleading.
-
February 15, 2024
Club, Insurer Resolve Fiduciary Breach Coverage Row
A country club owner, various club board members and Selective Insurance Co. agreed to dismiss their dispute Thursday in Massachusetts federal court over coverage for breach of contract and fiduciary duty claims that club investors lodged in arbitration, resolving the coverage case after reaching a settlement in January.
-
February 15, 2024
Software Company Seeks $10M Policy Limit For Bad Deal
A software company told a California federal court that its insurer breached its contract by failing to cover $10 million in damages suffered because of misrepresentations made by a property and casualty insurance software company it bought.
-
February 15, 2024
Oil Trader Says Cargo Storage Expenses Are Covered
An oil and gas trader slammed Liberty Mutual's attempt at an early win in a $2.4 million coverage dispute over losses related to a contaminated oil shipment, telling a New York federal court Thursday it is entitled to recover both barge storage expenses and attorney fees.
-
February 14, 2024
Insurer Needn't Defend Landlord From Antitrust MDL
A Washington state judge has ruled in favor of an insurer in a coverage dispute revolving around nearly 40 antitrust class action claims against landlords that have been combined into a multidistrict litigation case, finding that the insurer owes no defense coverage to an accused property manager.
-
February 14, 2024
Contractor Owes $13M To Cover Virus Defaults, Insurer Says
A Michigan-based insurer asked a Florida federal court Wednesday to grant a default final judgment in its indemnification suit against a contractor, seeking to force the company to cough up nearly $13 million to reimburse payments against its surety bonds and protect the insurer from future claims.
-
February 14, 2024
Bed Bath & Beyond Execs Given Access To $10M In Insurance
An insurer for bankrupt housewares retailer Bed Bath & Beyond will cover up to $10 million in legal costs incurred by company executives who were subpoenaed or named as defendants in litigation connected to the store, a New Jersey bankruptcy court said.
-
February 14, 2024
Progressive Unit Seeks Win Against Uber, Widower Of Driver
A Progressive unit asked a North Carolina federal court Wednesday to grant it a win in its attempt to get out of providing coverage for an UberEats driver who was killed in a car crash, asserting that its policy for Uber doesn't cover injuries caused by uninsured or underinsured motorists.
-
February 14, 2024
Miami Law Firm Not Covered In Overbilling Row, Judge Says
An insurer does not have to defend a Miami law firm in a lawsuit accusing it of overbilling a client, a Florida federal judge has ruled, finding that the underlying allegations do not constitute professional services as defined by the firm's policy.
-
February 13, 2024
Insurers Must Pay Pharma Co. Defense Costs In SEC Probe
A drug development company formed by a merger is entitled to insurance payments for expenses it paid two of its former officers in connection with federal subpoenas because the insurer failed to show that an exclusion applied, a California federal judge ruled Monday.
-
February 13, 2024
CEO Needn't Consent To CFO's Settlement, NY Court Says
A sporting goods company's former CEO does not get a say in the former CFO's $2.8 million settlement with a liquidating trust just because they're both insured under the same directors and officers policy, a New York federal judge ruled, calling the ex-CEO's interpretation of the policy "unreasonable and illogical."
-
February 13, 2024
Insurer Wants Security Cos. To Repay Assault Defense
An insurer said it does not owe coverage to two security service companies facing several lawsuits filed by grocery store customers who claim they were battered by security guards, telling a California federal court that the companies owe it reimbursement because their policies don't cover bodily injuries.
-
February 13, 2024
OpenText Wants Out Of Class Action Coverage Suit
OpenText told a Michigan federal court it should be dismissed from an insurer's suit seeking to avoid coverage of a class action from former Covisint shareholders alleging an unfair merger, saying it's not involved in the underlying case and its only alleged connection is that it acquired outstanding Covisint stock.
-
February 13, 2024
Life Insurer Failed To Secure Data From Hack, Class Says
A life insurance provider and its parent company failed to protect sensitive customer information from a data breach, a proposed class action told an Indiana federal court, saying the parent company was hacked via a SIM swapping scheme targeting a senior employee.
-
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.
-
February 12, 2024
Consulting Firm Says Ex-Partner Stole Captive Insurance Biz
A consulting firm that assists in establishing captive insurance companies told a Colorado federal court that its former business partner breached its contract by working behind the firm's back to snag its clients and sabotage its business relationships, depriving the firm of both business opportunities and potential commission.
-
February 12, 2024
Panel Slams Life Insurer's 'Extreme' View Of Child Benefits
A California appeals court panel challenged a life insurer's "extreme" view that its policy was limited to biological children and excluded coverage for the murdered child of the policyholder's fiancée, reinstating several of the parent's claims that were dismissed by a lower court.
-
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.
-
February 12, 2024
Geico Says Medical Fraudsters Nabbed $1.1M In Auto Benefits
Several unlicensed individuals submitted hundreds of fraudulent charges for services provided to Geico-insured car accident victims, the insurer has alleged in New York federal court, claiming it lost more than $1.1 million in the no-fault insurance fraud scheme.
-
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.
-
February 09, 2024
4th Circ. Atty Fraud Ruling Limits Criminal Defense Coverage
The Fourth Circuit pushed criminal matters to the outer margins of professional liability insurance as it finalized its decision affirming a Maryland attorney is not entitled to coverage of defense costs from charges that he defrauded financial institutions.
-
February 09, 2024
New York Teacher Pays $75K For Mock Slave Auction Harm
A northern New York teacher will pay $75,000 for holding a mock slave auction of Black students in her classroom, settling a federal suit over a lesson a 10-year-old student's mother said emotionally damaged her son.
-
February 09, 2024
Adviser Asks 4th Circ. To Rethink Defamation Coverage Denial
An investment adviser asked the Fourth Circuit to rethink its decision affirming a lower court’s ruling that she was not entitled to coverage under her firm's professional liability insurance policy, saying that the opinion "defies any logic" and contradicts settled South Carolina law.
-
February 09, 2024
Liberty Mutual Bailed On Wire Fraud Coverage, Agency Says
Liberty Mutual wrongly denied crime coverage to an insurance agency after it lost more than $228,000 because of wire fraud, the agency alleged in a suit filed in Virgin Islands federal court.
Expert Analysis
-
The Most-Read Securities Law360 Guests Of 2020
The most-read securities articles written by Law360 guest experts in 2020 centered around market volatility triggered by COVID-19; remote testimony considerations as courtroom proceedings moved online; and risk and compliance issues related to the Coronavirus Aid, Relief and Economic Security Act.
-
A Look At Contrasting Rules For Excess Insurance Policies
Though the Delaware Superior Court held in Pfizer v. U.S. Specialty Insurance that claims settlements exceeding primary policy limits trigger excess insurance, policyholders should continue to pay close attention to exhaustion clause language due to competing court rules nationwide, say Brian Scarbrough and Deepthika Appuhamy at Jenner & Block.
-
Del. Solera D&O Decision May Have Limited Impact
While the Delaware Supreme Court's recent decision in Solera is a blow for companies in the state seeking protection for certain key appraisal proceedings, the ruling hinges on the insurers' narrow definition of a violation that will trigger directors and officers coverage for securities-related claims, making it unlikely that other jurisdictions will follow suit, say attorneys at Hunton.
-
Treasury Stance On Ransomware Payment Could Hurt Targets
Recent statements from two U.S. Department of the Treasury offices indicate that paying off ransomware with cryptocurrency may trigger certain registration requirements and U.S. sanctions scrutiny, placing a significant regulatory burden on cybervictims and their incident response consultants, say attorneys at McDermott.
-
OFAC Cyber Ransom Guidance Has Insurance Implications
A new advisory from the U.S. Department of the Treasury's Office of Foreign Assets Control will likely cause delay in insurance coverage determinations for ransom payments, but there are steps policyholders can take to secure coverage for restoration costs when a ransom is not paid, say attorneys at Hunton.
-
How To Navigate A Hardening D&O Insurance Market
The directors and officers liability insurance market's shift toward favoring sellers, coupled with the potential surge of lawsuits against companies as a result of COVID-19's economic impact, increases the importance of mitigating risks by reexamining existing D&O coverage, say attorneys at Jenner & Block.
-
When Do Insureds' Legal Fees Constitute Defense Expenses?
An Oklahoma federal court's surprising decision in Turner v. XL Specialty Insurance — now on appeal before the Tenth Circuit — found that a named defendant's legal costs did not qualify as defense expenses, highlighting ambiguities in how "defense" is defined for insurance purposes, say David Kroeger and Catherine Doyle at Jenner & Block.
-
Why D&O Insurance Is Costly Despite Fewer Securities Suits
Although securities class action filings have dropped drastically this year, the cost of directors and officers insurance continues to increase due to new risks presented by the pandemic and other factors, says Priya Huskins at Woodruff Sawyer.
-
3 Ways PE Firms Can Manage Risk Amid COVID-19
Private equity firms should implement certain risk management tactics — such as requesting a preferred law firm and rejecting extrinsic evidence endorsements — in anticipation of increasing reluctance from insurers to cover legal defense costs amid the pandemic, says Ashley Jordan at Reed Smith.
-
Attys Shouldn't Overlook Obligations To Potential Clients
A recent American Bar Association opinion addressing the types of new-client consultations that could lead to disqualification is a reminder that lawyers indeed owe prospective clients certain duties, which call for attention to three best practices, say Sarah Sweeney and Thomas Wilkinson at Cozen O'Connor.
-
Ohio Ruling Adds To Insurance Uncertainty For Opioid Suits
An Ohio appeals court's recent decision in Acuity v. Masters Pharmaceutical fails to address an insurer's duty to indemnify policyholders embattled in opioid litigation, only amplifying the uncertainty surrounding insurance coverage for opioid judgments and settlements, say attorneys at Nicolaides.
-
Pre-IPO Companies Should Upgrade Their D&O Coverage
Directors and officers of private companies — especially startups preparing for their initial public offering — should consider enhancing their D&O insurance coverage to confront the new regulatory and compliance risks they face, say attorneys at Freshfields and Burns Bowen.
-
5 Tips For Purchasing Insurance During A Pandemic
Insureds are likely to purchase or renew insurance at least once during the COVID-19 crisis and should plan carefully to mitigate the risk of potential coverage gaps caused by the pandemic's long duration and broad impact, says Dennis Windscheffel at Akin Gump.