Security Firm Wins Coverage Dispute

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Client is a private company that hires off-duty City policy officers to provide security services at local establishments who contract with client. Client obtain a commercial general liability policy, which was twice renewed. Client's insurer filed a declaratory judgment action seeking to declare the policies void ab inition based upon alleged misrepresentations made during the underwriting process. The alleged misrepresentations included (1)that the City would provide coverage for "color-of-duty" and "police action" claims, and that(2) certain alleged indemnity agreements were not provided. The client denied the misrepresentation. After a two day trial, the Circuit Court agreed that the client did not make any misrepresentations during the underwriting process and that all such information alleged to be misrepresented was fully disclosed. Several tort claims filed against the client arising out of its employees' alleged misconduct were stayed pending the outcome of the insurance coverage case. The published newspaper article summarizes the facts of the case, explains its outcome, and contains quotes from counsel

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© Adam Sampson, Law Offices of William Alden McDaniel, Jr. | Attorney Advertising

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