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Ohio Supreme Court Rules No Coverage For Ransomware Attack Under BOP Policy Because Computer Software Sustained No Direct Physical...

The Ohio Supreme Court waited until the last week of the year to issue what may be the most important silent coverage decision of 2022. Direct physical injury is a fundamental requirement of first-party property policies. The...more

Tic-Tac-Toe, Sixth Circuit Finds No Coverage For COVID-19 Claims Based Upon The Absence of Direct Physical Loss

The U.S. Court of Appeals for the Sixth Circuit recently affirmed the dismissal of a policyholder’s COVID-19 insurance coverage action in Santo’s Italian Café LLC v. Acuity Insurance Co., No. 21-3068 (6th Cir. Sept. 22,...more

Insurers Prevail in First Two U.S. Appellate Court Decisions

The pace of new COVID-19 coverage actions has slowed down in recent months, but new cases continue to be filed. As of August 31, 2021, according to the Penn Law COVID Coverage Litigation Tracker, more than 1,980...more

No E&O Coverage for Title Agent's Phishing Losses

A New Jersey federal district court recently ruled that there was no coverage under a title agent's errors and omissions policy for losses resulting from an email phishing scam. In Authentic Title Services, Inc. v. Greenwich...more

Where We Stand: The Latest Snapshot of COVID-19 Business Interruption Insurance Coverage Litigation

Approximately 1,300 COVID-19 business interruption and civil authority insurance coverage cases are working their way through federal and state courts throughout the country. Decisions continue to be rendered and tracking...more

Update on Proposed COVID-19 Insurance Coverage Legislation and Litigation: Are Cooler Heads Beginning to Prevail?

In the wake of government quarantine/shut down orders being executed in response to the pandemic, a flurry of bills were introduced in several states to retroactively create—by government fiat—business interruption insurance...more

Virus Exclusions Are Not Preventing Some Policyholders from Filing COVID-19 Coverage Lawsuits

A steady stream of COVID-19-related insurance coverage matters continues to be filed in state and federal courts across the United States. As we have previously discussed in an April 4 update and an April 9 update,...more

Additional Insights for Insurers From New COVID-19 Coverage Suits

Since our prior post from last week, additional COVID-19 coverage lawsuits have been filed throughout the United States, and themes and insights concerning theories of coverage continue to emerge. At least four new...more

Insights on the First COVID-19 Coverage Lawsuits

As the number of filings of COVID-19 coverage actions continue to increase, we thought it would be useful to review these cases for our insurer readership so they can better understand the issues and themes that are emerging...more

Chicago-Area Restaurants Seek Insurance Coverage for COVID-19 Business Interruption Losses in Illinois Federal Court

Restaurants are among the leading wave of business owners filing COVID-19-related business interruption coverage actions. Illinois is now the venue of one such suit...more

Appellate Court Rules Insurers Have Duty to Defend Illinois Biometric Privacy Claim

An Illinois state appellate court recently ruled that a customer's biometric privacy class action claims against an insured tanning salon potentially fell within two insurer's personal injury coverage. See, West Bend Mutual...more

As COVID-19 Coverage Law Suits Are Filed, New Jersey Legislature Considers Mandated COVID-19 Business Interruption Coverage

The first COVID-19-related insurance coverage cases are now being filed. In Louisiana, a declaratory judgment action was brought against Certain Underwriters at Lloyd's, asking the court to rule that an all-risk policy...more

Computer Fraud and Funds Transfer Fraud Coverages Not Triggered by Social Engineering Phishing Scam

A Mississippi federal district court became the latest to rule that Computer Fraud Transfer and Funds Transfer Fraud coverages were not applicable to losses resulting from an email phishing scam. In Miss. Silicon Holdings,...more

Coverage for Phishing Loss Precluded by Voluntary Parting Exclusion; Forgery Coverage Not Triggered

An insurer recently secured a ruling that it had no obligation to cover a loss incurred as a result of an email phishing scam. In Midlothian Enterprises, Inc. v. Owners Insurance Company, No. 3:19-cv-51 (E.D. Va. Feb. 20,...more

Court Rejects Coverage for Phishing Loss Under Financial Institutions Bond, Calls for More Briefing on Computer Systems Fraud...

A New Jersey federal district court held last week that losses arising out of a phishing scam were not covered under a bank's Financial Institutions Bond. In Crown Bank JJR Holding Co. v. Great Am. Ins. Co., 2020 U.S. Dist....more

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