News & Analysis as of

Policy Exclusions Fraud

J.S. Held

Fidelity Investigations: A Comprehensive Guide to Successful Claims Outcomes

J.S. Held on

Introduction: Understanding Fidelity Investigations - Fidelity / Crime / Financial Institution Bonds, in a general sense, cover an insured from the willful theft of property, money, and securities by one of their employees...more

Womble Bond Dickinson

Sam Bankman-Fried Case Provides Lessons on Fraud and D&O Insurance

Womble Bond Dickinson on

Sam Bankman-Fried’s criminal trial started this week; and on the same day, he sued one of his director & officer insurers. And a lot of people are asking, why? Is the timing a coincidence or on purpose? Shouldn’t he be...more

Wiley Rein LLP

Dishonesty Exclusion Bars Coverage For Claim Based On Actions Of Contractor Authorized To Conduct Operations On Behalf Of Insured

Wiley Rein LLP on

Applying California law, a California state appeals court has held that a policy exclusion barring coverage for “any [c]laim . . . [b]ased upon or arising out of any . . . act or omission . . . which is . . . dishonest,...more

Ervin Cohen & Jessup LLP

Companies That Pay Hackers May Be Able to Recoup Their Losses

Where companies are victimized by ransomware or email scams, their losses arise from payments made by an officer or employee of the company. In the case of ransomware, a company’s files are held hostage pending payment...more

Wiley Rein LLP

Third-Party Wire Fraud Triggers Conversion Exclusion Under Professional Liability Policy, Despite No Direct Insured Involvement in...

Wiley Rein LLP on

Applying New Jersey law, the United States District Court for the District of New Jersey has held that a conversion exclusion bars coverage under a professional liability policy for multiple claims against an insured title...more

Ervin Cohen & Jessup LLP

9th Circuit says Computer-Fraud Policies May Cover ‘Spoofing’

Consider the following two scenarios resulting in identical losses, but potentially two entirely different insurance coverage outcomes. In the first instance, a thief hacks, or gains unauthorized entry, into an insured’s...more

Rivkin Radler LLP

Eleventh Circuit Affirms “Exceptional Case” Ruling: Insurer Had No Duty to Defend Construction Debris Claim Where Amended...

Rivkin Radler LLP on

Eleventh Circuit Affirms “Exceptional Case” Ruling: Insurer Had No Duty to Defend Construction Debris Claim Where Amended Complaint Omitted Crucial Fact Implicating Pollution Exclusion The Eleventh Circuit, affirming the...more

Lowenstein Sandler LLP

Fintech Company Secures Indemnity Coverage Under Professional Liability Policy for Fraudulent Funds Transfer Claim

Lowenstein Sandler LLP on

What You Need To Know: - Recent case law is trending favorably for policyholders to secure coverage for computer fraud claims under a wide array of insurance policies. - Because several types of policies may be...more

Carlton Fields

Real Property, Financial Services, & Title Insurance Update: Week Ending October 4, 2019

Carlton Fields on

Real Property Update - Foreclosure / Bankruptcy / Surrender: borrower cannot challenge judgment of foreclosure entered upon judicial notice of his statement of intention to surrender the property and order of discharge...more

Carlton Fields

Real Property, Financial Services, & Title Insurance Update: Week Ending May 10, 2019

Carlton Fields on

Real Property Update - Ad Valorem Taxes: in a matter of first impression, county's immunity from taxation does not extend extraterritorially to property it owns in another Florida county - Joiner v. Pinellas Cnty., Fla.,...more

Jaburg Wilk

Arizona Supreme Court Holds Contractual Liability Exclusion Does Not Apply to Breach of Duty to Reasonably Construct Home

Jaburg Wilk on

The Holding - In Teufel v. Am. Family Mut. Ins. Co., 244 Ariz. 383, 419 P.3d 546 (2018), the Arizona Supreme Court recently held that a Contractual Liability Exclusion in homeowner policies did not apply to a claim for...more

Morris James LLP

Delaware Public Policy Does Not Preclude D&O Insurance Coverage for Fraud

Morris James LLP on

In Arch Insurance v. Murdock, (Del. Ch. Mar. 1, 2018), a D&O insurance coverage dispute, the state Superior Court’s complex commercial litigation division reasoned broadly to hold that, absent a contrary choice of law clause,...more

Pullman & Comley, LLC

Alert: Law Firms May Have Duty To Warn Clients of Possible Insurance Coverage

Pullman & Comley, LLC on

A recent decision by a New York State Appellate Court has again reminded law firm risk managers of a possible law firm obligation to clients, especially those recently served with a lawsuit. The Court held that defense...more

Manatt, Phelps & Phillips, LLP

Insurance Recovery Law - October 2015

Unfair Trade Practices Exclusion Doesn't Cover Consumer Protection Suits - Why it matters: An unfair trade practices clause did not bar coverage for a policyholder's subsidiary, an Illinois federal court ruled, ordering...more

Manatt, Phelps & Phillips, LLP

Insurance Recovery Law - August 2015

Insured's Notice to Broker Satisfied Policy Requirements, Illinois Court Rules - Why it matters: An insured's notice to its broker satisfied the policy's notice requirements, an Illinois appellate panel recently...more

Proskauer - Insurance Recovery & Counseling

Policyholder Warning: What One Provision Giveth (Defense Costs), Another Provision May Taketh Away

Professional liability insurance policyholders often breathe a sigh of relief when their insurer begins funding the costs of defending against a civil claim or government investigation. That is one of the reasons they bought...more

Proskauer - Insurance Recovery & Counseling

“Prior or Pending Litigation” Exclusion Bars Coverage for Litigation that Was Unknown to Policyholder

Companies that do business with the federal government, or whose business transactions otherwise involve payments by the government, undoubtedly understand the exposure they face to “whistleblower” or “Qui Tam” lawsuits...more

Cozen O'Connor

D&O Carrier Allowed to Recoup Defense and Indemnity Costs After Employees Plead Guilty to Misconduct

Cozen O'Connor on

In Protection Strategies, Inc. v. Starr Indemnity & Liability Co., the U.S. District Court for the Eastern District of Virginia allowed an insurer to recoup more than $670,000 in costs paid for the insured first to respond to...more

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