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Denial of Insurance Coverage Insurance Claims Policy Exclusions

Wiley Rein LLP

Abuse Exclusion Applied to Bar Coverage for Entire EEOC Proceeding

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The United States District Court for the Southern District of New York, applying New York law, held that a Sexual and Physical Abuse exclusion barred coverage for a discrimination complaint filed with the Equal Employment...more

Wiley Rein LLP

Interrelated Claims Provision Bars Coverage for Client’s Claim Tied to Broker’s Pre-Hire Conduct

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The U.S. District Court for the Eastern District of New York, applying California law, held that an insured financial services company was not entitled to coverage under its professional liability policy for a client’s claim...more

Bradley Arant Boult Cummings LLP

New Allegations Trigger Insurance Coverage Despite “Prior Knowledge” and “Prior and Pending Litigation” Exclusions

A recent coverage decision by the Delaware Superior Court in Motive Technologies, Inc. v. Associated Industries Insurance Company shows that examining the full timeline of allegations in a lawsuit can defeat policy exclusions...more

Wiley Rein LLP

Criminal Indictment of Supervisor May Not be a Claim “By or on Behalf of” Minor Employee under EPL Policy

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The U.S. District Court for the Southern District of Ohio, applying Ohio law, has held that it cannot conclude as a matter of law whether a criminal indictment brought by the state based on sexual harassment of a minor...more

Wiley Rein LLP

Insurer Must Defend Suit Over Unauthorized Use of Images in Social Media Ads

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The U.S. District Court for the District of Minnesota, applying Minnesota law, has held that an insurer had a duty to defend a lawsuit alleging personal and advertising injury under both a policy’s general liability coverage...more

Wiley Rein LLP

Subsidiary Exclusion Bars Coverage for Claim Alleging Wrongful Conduct Before and After Entity Became a Subsidiary; Claim for...

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The United States District Court for the Southern District of New York, applying New York law, has held that a subsidiary exclusion barred coverage for a lawsuit alleging fraud in connection with investments in a failed...more

Carlton Fields

Before You Ride That ATV, Check Your Local No-Fault Statute

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Is it a good idea to drive a vehicle that is not street legal on a public road? Probably not. But if you’ve already done it, a recent Sixth Circuit decision suggests that might mean it’s covered by your auto insurance. In...more

Conn Kavanaugh

A Hollywood Illustration of the Prior Knowledge Exclusion in Claims-Made Insurance Policies

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The “prior knowledge exclusion” is an important provision to understand in the world of claims-made insurance policies. A typical prior knowledge exclusion specifies that the policy may provide coverage for a claim only if,...more

Wiley Rein LLP

Known Risk, No Coverage: Prior Knowledge Exclusion Applies Based on Probate Allegations

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The United States District Court for the District of New Jersey, applying New Jersey law, has held that a prior knowledge exclusion barred coverage for a legal malpractice claim arising from a probate dispute because a...more

Wiley Rein LLP

Prior Acts Exclusion Dooms Company’s Bid for D&O Coverage

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The Supreme Court of Delaware, applying Delaware law, has held that certain allegations in an underlying complaint did not constitute a separate “Claim” against an insured under the D&O policies at issue. Origis USA LLC v....more

Shumaker, Loop & Kendrick, LLP

Client Alert: Civil Lawsuits Under Human Trafficking Statutes are on the Rise: Recent Decisions Find Coverage for Policyholders...

Increasingly, many companies are finding themselves entangled in human trafficking claims under federal and state laws. The federal Trafficking Victims Protection Reauthorization Act (TVPRA) and similar state laws cast a wide...more

Carlton Fields

Sixth Circuit Decides Stallion’s “Vitamin Shot” Was a “Drug or Medication” Triggering Exclusion

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In Cypress Creek Equine LLC v. North American Specialty Insurance Co., the Sixth Circuit Court of Appeals recently told an insured to “hold your horses” regarding coverage under mortality policies covering a thoroughbred...more

Wiley Rein LLP

Delaware Court Rejects Insurers’ “Related Matter” and Late Notice Arguments, Finds Duty to Defend

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The Superior Court of Delaware, applying Delaware law, has held that professional liability insurers had a duty to defend their insured against copyright infringement claims, finding that a “Deliberate Acts” exclusion did not...more

Carlton Fields

Virginia District Court Holds That Insurance Company Has Duty to Defend and Indemnify Hotel Operator in Underlying Sex Trafficking...

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A federal district court in Virginia held that two insurance companies have a duty to defend and indemnify a hotel operator in an underlying lawsuit alleging that the operator aided and abetted sex trafficking of a woman. In...more

Wiley Rein LLP

Policy Exclusions Bar Coverage for Law Firm’s Alleged Misappropriation of Client Funds

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The United States District Court for the Eastern District of Pennsylvania has held that an insurer has no duty to defend a lawsuit alleging that an insured law firm fraudulently induced its client to wire money to the firm...more

Butler Snow LLP

My Opinion About Insurance Coverage Opinions

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As anyone with a large insurance practice knows, insurance companies sometimes reach out to outside counsel not to request the defense of a lawsuit against an insured (or perhaps the insurer itself), but instead to ask for a...more

Carlton Fields

A Collage of Cases: Recent Decisions in Life, Disability, and Accidental Death Insurance Litigation

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ERISA – Attorneys’ Fees and Social Security Disability Offset - In Stark v. Reliance Standard Life Insurance Co., the Tenth Circuit Court of Appeals affirmed a district court order dismissing ERISA claims brought by the...more

Carlton Fields

Insurer Stripped of Coverage Defenses for Models’ Suit Against Insured Club

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Declining to find any of the insurer’s proffered exclusions applicable, a federal district court in Minnesota sided with the insured — a strip club that was sued for using models’ images without permission in its online...more

Pillsbury - Policyholder Pulse blog

California Appeals Court Reinforces that Insurer Failure to Investigate Potential Bases for Coverage Outside the Pleadings Can...

In the recently published case Bartel v. Chicago Title Insurance Company, a California appellate court reaffirmed longstanding California law on insurers’ broad duty to defend even in the face of complicated underlying facts,...more

Carlton Fields

New Mexico Appeals Court Holds No Bad Faith for Shooting Claim Precluded by GL Policy’s A&B Exclusion

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In Wilson v. Cincinnati Specialty Underwriters Insurance Co., the New Mexico Court of Appeals affirmed the district court’s decision granting summary judgment to an insurer after determining that bad faith claims on a...more

Pillsbury - Policyholder Pulse blog

Paloma Resources v. Axis Insurance Shows How “The” Can Be the Genuine Article in a Policyholder Defense

It’s said that an ant can carry fifty times its own weight. That’s nothing. A recent decision out of the U.S. Court of Appeals for the Fifth Circuit provides a compelling reminder to policyholders and their counsel: Even the...more

Bradley Arant Boult Cummings LLP

Texas Court Exposes Key Gap in Professional Liability Coverage for Home Health Franchisors

In the home health care business? Whether a franchisor, franchisee, or independent agency, beware of bodily injury exclusions in professional liability policies that could eliminate coverage for otherwise covered claims....more

Wiley Rein LLP

Professional Services Exclusion Bars Coverage for Suit Stemming from Faulty DNA Analysis

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In a win for Wiley’s client, a Florida federal court held that a professional services exclusion barred coverage for underlying litigation arising out of the insured’s faulty DNA analysis services. A DNA laboratory provided...more

Cozen O'Connor

Court Differentiates Faulty and Defective Workmanship from Vandalism or Malicious Mischief

Cozen O'Connor on

In Carr v. Spinnaker Insurance Company, the United States Court of Appeals for the Ninth Circuit upheld the district court’s finding that property damage resulting from objectionable and imperfect work performed by an...more

Haynes Boone

Torrential Rains and Insurance Claims: When Exclusions and Limitations On ‘Flood’ Coverage May Not Apply

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With five months to go, 2025 is already the year of the flash flood in the United States. To date, the National Weather Service has issued more than 3,600 flash flood warnings across the United States in 20251...more

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