News & Analysis as of

Commercial General Liability Policies Reservation of Rights

Presley & Presley

December Bad Faith Update: No Request for Defense, No Coverage Problem

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With very limited exceptions, liability policies provide insureds with two primary benefits: ­a defense paid for by the insurance carrier and indemnity for covered claims. These benefits to the insured are purchased with...more

Ervin Cohen & Jessup LLP

Opportunities for insisting on independent counsel

Civil Code section 2860 authorizes the retention of independent counsel in the event a conflict of interest arises between the insurer and its insured. Under the statute a conflict of interest is deemed to arise “when an...more

Rivkin Radler LLP

Insurance Update - June 2023

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Courts took up some interesting insurance questions this past month. Here’s some we address in our June Insurance Update. When a government sponsored cyberattack infects computers worldwide, does the war exclusion apply? ...more

Wiley Rein LLP

Insurer With Excess “Other Insurance” Clause Owes No Defense Obligations

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The United States District Court for the Southern District of New York, applying New York law, has held that an E&O insurer had no obligation to contribute toward the defense of an underlying matter in light of its policy’s...more

Cozen O'Connor

Washington Supreme Court Holds Certain Hybrid Occurrence/Claims-Made and Reported Policies May Violate Public Policy

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“We cannot enforce insurance provisions that render coverage so narrow it is illusory.” The Washington Supreme Court used this reasoning to hold that a contractor’s commercial general liability policy was unenforceable where...more

Butler Weihmuller Katz Craig LLP

Sexual Assault Is Not A Professional Service

Not many cases in Florida analyze Professional Services Exclusions in general liability policies.  However, on September 16, 2022, the Eleventh Circuit Court of Appeals released an order providing some clarification about the...more

White and Williams LLP

MA SJC Rules Attorney’s Fees Awarded Under G. L. c. 93A Are Not Covered by Liability Policy

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In Vermont Mutual Insurance Company v. Poirier, the Massachusetts Supreme Judicial Court (SJC) ruled that attorney’s fees awarded under M.G. L. c. 93A are not covered by a Businessowner’s Liability Policy, because such fees...more

White and Williams LLP

Delaware District Court Holds D&O Policy Does Not Cover Acts Prior to Insured’s Formation, and Rejects Attempt to Obtain Coverage...

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In a decision addressing several coverage issues under a directors and officers liability policy, a Delaware federal court held that coverage did not extend to claims based on acts alleged to have taken place before the...more

Seyfarth Shaw LLP

Third-Party Claims in the Era of COVID-19: Exposure to Businesses and the “Safety Net” of Insurance

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As states push to re-open, retailers will be balancing the welcome prospect of renewed business and cash flow against the fear and cost of claims that could be made against them by customers, vendors, subcontractors, and...more

Carlton Fields

Eleventh Circuit Weighs in on Allocated Verdict Form Procedure

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The Eleventh Circuit, in the matter of QBE Specialty Insurance Co. v. Scrap Inc., affirmed the district court’s decision to grant summary judgment in favor of QBE holding that there was no indemnity coverage for an underlying...more

Carlton Fields

Look No Further Than the Insuring Clause: Ill-Gotten Gains Do Not Constitute Covered “Loss”

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On August 26, 2019, the Eleventh Circuit Court of Appeals, applying Florida Law, held that ill-gotten gains do not constitute covered “loss” within the meaning of a D&O policy. In Philadelphia Indemnity Insurance Co. v. Sabal...more

Farella Braun + Martel LLP

Negligent Hiring and Supervision Can Be an 'Accident'

The California Supreme Court answered the Ninth Circuit’s certified question in Liberty Surplus Insurance v. Ledesma & Meyer Construction. The court rephrased the question presented to it as: “When a third party sues an...more

Spilman Thomas & Battle, PLLC

Off the Reservation (of Rights): South Carolina Speaks on CGL Insurer Notification Requirements

Lawsuits over defective construction are common in South Carolina. So, when a construction company covered by a CGL insurance policy is sued over an alleged construction defect, the insurance company may agree to defend the...more

Spilman Thomas & Battle, PLLC

The Site Report - Construction Law Insights - December 2017

Welcome to the first issue of our newly redesigned e-newsletter for the construction industry. The name and look of this publication may have changed, but one thing remains the same: our dedication to providing insightful,...more

Butler Weihmuller Katz Craig LLP

Holy Harleysville! – The Rules Governing RORs, Intervention, and More in South Carolina Have Just Changed

For insurers, litigating third-party coverage disputes in South Carolina has always proved formidable. Insurers can be liable for “bad faith” even if there is no coverage; they may be required to pay an insured’s attorney’s...more

Carlton Fields

Reading the Crystal Ball: Reservation of Rights Letters under South Carolina Law in the Wake of Harleysville Group Insurance v....

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The South Carolina Supreme Court recently took a firm stance on what constitutes a sufficient reservation of rights letter in Harleysville Group Insurance v. Heritage Communities, Inc., et al., — S.E.2d — , No. 2013-001281,...more

Cozen O'Connor

Reservation of Rights Requirements Adopted by South Carolina Supreme Court

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The South Carolina Supreme Court’s recent decision in Harleysville Group Insurance v. Heritage Communities, Inc., Appellate Case Nos. 2013-001281 and 2013-001291, 2017 WL 105021 (S.C. Jan. 11, 2017) affirms what is and is not...more

Kilpatrick

Top 10 Things Litigators Should Know About Insurance

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Most non-insurance litigators run for the hills when the topic of “insurance coverage” arises. Others profess to know enough about insurance coverage just to make themselves dangerous. Considering the rising costs of...more

Neal, Gerber & Eisenberg LLP

Defense Lawyers Beware: Failure to Supplement Answers to Interrogatories Estopped Insurer from Relying on Coverage Limitation

How often do you hear defense attorneys say, “I’m not interested in anything related to coverage. That’s not my concern.” From a coverage lawyer’s perspective, this is a dangerous position, both ethically and legally....more

Dorsey & Whitney LLP

Settling Parties Beware: Failing to Provide Notice to Your Insurer Before Settling May Doom Your Chance of Recovery

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On April 25, 2016, the Colorado Supreme Court issued a decision in Travelers Prop. Cas. Co. v. Stresscon Co. Stresscon, a subcontracting concrete company, entered into a settlement agreement – without providing notice to its...more

Manatt, Phelps & Phillips, LLP

Insurance Recovery Law - September 2015

Exception to Mold Exclusion Requires Defense of Suit Alleging Injuries From Moldy Water - Why it matters: An exclusion for "Fungi or Bacteria" did not prevent a federal court judge in Tennessee from ordering an insurer...more

Proskauer - Insurance Recovery & Counseling

Seventh Circuit Issues Stern Warning For Insurers That Reject Their Duty to Defend

The first line of the Seventh Circuit’s opinion says it all: “This case provides a warning for insurance companies who refuse to defend their insureds.” As the court’s admonishment suggests, insurers that improperly refuse to...more

McNees Wallace & Nurick LLC

PA Supreme Court Gives Policy Holders Right to Settle Without Insurer Approval

Insurance coverage counsel have been anxiously awaiting the Pennsylvania Supreme Court's decision in Babcock & Wilcox Co. v. Am. Nuclear Insurers, 2015 Pa. Lexis 1551 (July 21, 2015), since the high court agreed to hear the...more

Robinson+Cole Class Actions Insider

Can an Insurer Intervene in a Class Action to Protect Against a Collusive Settlement?

Liability insurers are sometimes faced with a difficult scenario: Their insured has been sued in a class action with potentially large stakes. The insurer believes they have no duty to defend and a denial of coverage is...more

Manatt, Phelps & Phillips, LLP

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

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