Commercial General Liability Policies

News & Analysis as of

No CGL Coverage for Faulty Workmanship Under Pennsylvania Law

In State Farm Fire & Casualty Co. v. McDermott, 2014 WL 5285335 (E.D. Pa. Oct. 15, 2014), a federal court recently held that an insurer has no duty to defend or indemnify its insured against an underlying construction defect...more

Cyber coverage: mind the gap

This alert identifies a number of important themes in the growing area of exposure to cyber risks and offers advice on how to negotiate the new array of insurance coverage on the market....more

Pro-Policyholder Opinion Drives Home Importance of Excess Policy Language When Settling with an Underlying Insurer for Less Than...

A reoccurring issue with excess insurance is whether a policyholder can trigger excess coverage by agreeing to a below-limits settlement with an underlying insurer, and filling in the gap between the settlement amount and the...more

Testing Texas CGL Coverage For 3rd Party Products

On Sept. 19, the Fifth Circuit certified four questions to the Texas Supreme Court regarding coverage under a commercial general liability policy in U.S. Metals Incorporated v. Liberty Mutual Group Incorporated, No. 13-20433,...more

Pennsylvania Supreme Court Declines To Review Pro-Policyholder Decision; Contrary Arguments Possible

For years, product manufacturers relied on commercial general liability policies to defend and indemnify them for product liability claims. Although these policies may exclude coverage for pure economic loss or for damage to...more

P.F. Chang’s CGL Insurer Seeks Declaratory Judgement on Data Breach Claim

P.F. Chang’s China Bistro made headlines when it recently reported that 33 of its restaurant locations spanning 18 states suffered a data breach in connection with the restaurant’s point-of-sale payment systems. While the...more

New York Court Holds No Coverage for Publication of Credit Card Information

In its recent decision in Nat’l Fire Ins. Co. v. E. Mishan & Sons, Inc., 2014 U.S. Dist. LEXIS 130608 (S.D.N.Y. Sept. 16, 2014), the United States District Court for the Southern District of New York had occasion to consider...more

Financial Cost of Ebola Crisis Sparks Insurance Coverage Questions

Ebola has become a worldwide crisis. It has ravaged Liberia and other West African countries. It has been diagnosed in Europe. And, cases are now being reported in the United States. While the cost to human life is...more

Are you Really Protected? The Proliferation of Data Breaches Highlight the Increasing Role Cyber Insurance will Play

Every day seems to bring a new story about a significant data breach. Just within the last few weeks we have learned of the following cyber attacks... ...more

Mind the Details: Make Sure your WRAP Coverage is Done Right

A client recently asked for advice about insuring their development project with a wrap insurance policy. As we talked through the pros and cons, I was reminded of the intricacies of wrap insurance products. Undoubtedly,...more

Cut! Eighth Circuit Excludes Non-Board Member from CGL Coverage for “Directors”

Directors and Officers liability policies are typically precise in defining the job descriptions of the individuals to whom they offer coverage. Recently, in United Fire & Cas. Ins. Co. v. Thompson, No. 13-2352 (8th Cir....more

Get Exhausted! The Tenth Circuit Schools an Excess Insurer on How to Preserve Subrogation Claims in a Settlement

Claims against insured businesses sometimes implicate multiple liability policies issued by several different carriers, and it is sometimes prudent for some of those carriers to settle the underlying action, even if others...more

Cyber Voluntary Payment Defense Thwarted by Bank Fraud Regulation

Financial institutions are one of the entities most threatened by cyber crisis events. As data breaches and cyber threats become more inventive, the risks to financial institutions and their clients continue to grow. However,...more

Hacking Coverage Dispute Under Professional Liability Policy Gets the Go-Ahead from Federal Court

On October 6, 2014, a federal court denied a professional liability insurer’s motion to dismiss a coverage dispute over a $3.5 million payment the policyholder-bank made when a bank customer’s account was targeted by a...more

Fifth Circuit Requests Input from the Supreme Court of Texas Regarding Interpretation of Commercial General Liability (“CGL”)...

The rule courts generally employ to interpret undefined words in insurance policies — essentially, to look to the words’ plain or ordinary meaning — sounds simple. However, many times, there is more than one meaning of such...more

Is That Covered? "Additional Insured" Coverage for Claims Brought by Employees of Named Insured

Consider this common scenario: Big Shopping Mall owns the local shopping development and leases stores to multiple tenants, including the Popular Chain Restaurant. An employee of the Popular Chain Restaurant, Bob Suzealot, ...more

Cannonball! CGL Policy Does Not Cover Pool Contractor for Subcontractor’s Negligence

In Standard Contractors, Inc. v. National Trust Ins. Co., Civil Action No.:7:14-cv-66-HL, the U.S. District Court for the Middle District of Georgia recently granted a commercial general liability insurer’s motion to dismiss...more

FDA Outbreak Response Is Not a Constitutional Taking

Food companies are asking whether they can gain compensation from the United States government after a product recall. While the FDA Food Safety Modernization Act (FSMA) does provide for the possibility, a recent ruling by...more

Expect Focus - Regulators Are Watching: New Products, New Opportunities, New Risks - Volume III, Summer 2014

In This Issue: - IN THE SPOTLIGHT ..Standard CGL Policy Form Adds Data Breach Coverage Exclusion - LIFE INSURANCE ..Class Claims Against Lincoln National Barred in Section 419 Action – Again ...more

Texas Supreme Court Orders (9/2014)

The Texas Supreme Court did not issue any opinions in its weekly orders. But the Court did accept a case on a certified question from the United States Court of Appeals for the Fifth Circuit. The Court also set the date for...more

Connecticut Court Again Holds That Certificates of Insurance Do Not Confer Rights

A Connecticut Superior Court has further clarified the construction industry whether a certificate of insurance naming a party as an additional insured confers any rights on that party. In Hobbs, Inc. v. Charter Oak Fire...more

Pennsylvania Supreme Court Denies Review of Faulty Workmanship Decision

Last week, the Pennsylvania Supreme Court let stand the appellate decision in Indalex, Inc. v. National Union Fire Insurance Co. of Pittsburgh, Pa., which held that mold related health problems and property damage allegedly...more

Insurance Recovery Law - September 2014 #2

D&Os Entitled to Unfettered Access to Bankrupt Company’s Policy Proceeds to Fund Defense Costs: Why it matters - In an important victory for directors and officers of a bankrupt company, a New York court...more

Nebraska Appellate Court Gets Down to Earth to Hold That Faulty Workmanship Standing Alone Is Not An “Occurrence”

The insurance and construction industries have disagreed about coverage claims involving faulty workmanship for many years. Contractors believe their CGL insurance policies should always cover property damage caused by...more

Policy Observer - September 2014

All Sums or Pro Rata: Did You Get the Coverage You Bought? In recent decades, liabilities stemming from long-term bodily injury or property damage—as from exposure to asbestos or contamination of the environment—have...more

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