Specialty Lines

  • February 09, 2024

    4th Circ. Atty Fraud Ruling Limits Criminal Defense Coverage

    The Fourth Circuit pushed criminal matters to the outer margins of professional liability insurance as it finalized its decision affirming a Maryland attorney is not entitled to coverage of defense costs from charges that he defrauded financial institutions.

  • February 09, 2024

    New York Teacher Pays $75K For Mock Slave Auction Harm

    A northern New York teacher will pay $75,000 for holding a mock slave auction of Black students in her classroom, settling a federal suit over a lesson a 10-year-old student's mother said emotionally damaged her son.

  • February 09, 2024

    Adviser Asks 4th Circ. To Rethink Defamation Coverage Denial

    An investment adviser asked the Fourth Circuit to rethink its decision affirming a lower court’s ruling that she was not entitled to coverage under her firm's professional liability insurance policy, saying that the opinion "defies any logic" and contradicts settled South Carolina law.

  • February 09, 2024

    Liberty Mutual Bailed On Wire Fraud Coverage, Agency Says

    Liberty Mutual wrongly denied crime coverage to an insurance agency after it lost more than $228,000 because of wire fraud, the agency alleged in a suit filed in Virgin Islands federal court.

  • February 08, 2024

    Texas Adjuster No Longer To Pretend To Be Lloyd's Of London

    An insurance adjuster who hijacked the good name of British underwriting giant Lloyd's of London after blaming it for lost compensation agreed in Texas federal court to shut down businesses he opened in its name.

  • February 08, 2024

    9th Circ. Affirms Hiscox's Win In Design Co. CEO Fraud Row

    Hiscox Insurance Co. does not have to cover a design and marketing company's $850,000 arbitration award to a former CEO over alleged fraud, the Ninth Circuit ruled Thursday, finding that the arbitrator's decision qualified as a final adjudication that triggered a fraud exclusion in its policy.

  • February 08, 2024

    11th Circ. Rejects $60M Liposuction Death Coverage Plea

    The Eleventh Circuit affirmed on Thursday a district court's decision rejecting a man's request to recover a $60 million judgment from a medical practice's insurer for a liposuction-related death, finding that the practice's coverage was already diminished to the point of exhaustion.

  • February 08, 2024

    Insurance Orgs. Say Bill Would Prevent CFPB Overreach

    Bipartisan legislation seeking to clarify the powers of the Consumer Financial Protection Bureau has drawn support from insurance regulators and industry trade groups who say the bureau has encroached upon state-based insurance regulation despite clear statutory limitations.

  • February 08, 2024

    Broker Hit With Suit Over Data Breach Affecting 1.5 Million

    A California insurance broker is facing a proposed class action filed Thursday in federal court accusing the company of failing to keep the health and personal information of more than 1.5 million customers safe from exposure in an August cyberattack.

  • February 08, 2024

    NYC Jet Skier's Death Suit Not Covered, Insurer Says

    A jet ski tour company's row with the estate of a customer who died while on a tour does not qualify for defense or indemnity coverage, the company's insurer argued to a New York federal court, asserting that the company's alleged errors and omissions preclude coverage under its policy.

  • February 08, 2024

    Insurer Improperly Settled Shooting Claims, Court Told

    A Seattle-based housing provider said its primary insurer improperly tendered policy limits to settle two underlying claims alleging the provider was liable for deadly shootings near its apartment buildings in Georgia, telling a Washington state court that its insurer's actions have diluted its coverage for other claims.

  • February 07, 2024

    Insurer Ducks Some Coverage Of Dredge Tank Defect Suit

    A Wisconsin federal judge Wednesday ruled partially in favor of an insurer seeking a declaration that it needn't cover a metal fabricator's defense in an underlying arbitration over allegedly defective dredge tanks.

  • February 07, 2024

    Insurer's Suit Over Class Action Coverage Early, Covisint Says

    An insurer's lawsuit seeking to dodge coverage for an underlying shareholder class action alleging an unfair merger should be dismissed, former Covisint executives told a Michigan federal court, saying the issue of coverage is not ripe for dispute.

  • February 07, 2024

    NC Panel Reverses Doctor's Malpractice Coverage Win

    The North Carolina Court of Appeals reversed a trial court’s decision that found a doctor was entitled to defense coverage under his medical malpractice policy for a state medical board investigation, ruling that the doctor failed to timely notify the insurer of the investigation and therefore did not deserve coverage.

  • February 07, 2024

    Travelers Must Cover $2M Tainted Benzene Load, Co. Says

    A multinational chemical company accused Travelers in New York federal court of unreasonably denying coverage for over $2.1 million it lost from a contaminated benzene shipment, saying the insurer must also cover costs incurred from suing at-fault parties since it further evaded its subrogation obligations.

  • February 07, 2024

    Life Insurance Managers Botched Policy Surrender, Suit Says

    A group of financial insurance advisory companies mishandled the surrender of a life insurance policy and caused the beneficiary to lose more than $300,000 in benefits, the beneficiary told a New Jersey federal court.

  • February 06, 2024

    Investment Report Shows Cost Of Delaying Climate Action

    Insurers could face billions of dollars in losses if they continue with their current courses of investments that contribute to climate change, according to a new analysis by insurance regulators from California, Oregon and Washington.

  • February 06, 2024

    AIG Owes Coverage In $5.4M Contamination Suit, Co. Says

    A Houston-based plastics manufacturer told a Texas federal court that an AIG unit must defend and indemnify it in a $5.4 million lawsuit over contaminated plastic containers, saying the insurer has failed to tender defense costs despite agreeing to defend the company almost a year ago.

  • February 06, 2024

    Insurer Says Claims NJ Diocese Knew Of Abuse Bar Coverage

    An insurer doesn't have to indemnify the Diocese of Trenton in over 200 lawsuits alleging sexual molestation by diocese clergy, it told a New Jersey federal court, maintaining that the underlying suits asserted that the diocese had knowledge of the incidents.

  • February 06, 2024

    Chubb Unit Must Cover Lightning-Struck Yacht, Court Told

    A yacht's former owner told a Florida federal court that a Chubb unit breached its contract by not paying for damage that occurred after the $13.5 million vessel was struck by lightning while headed for repairs for flooding caused by a toilet valve malfunction.

  • February 06, 2024

    Wealth Co. Says Insurers Owe Coverage In Meth Suits

    A Seattle wealth management company told a Washington state court that its insurers have improperly withheld defense coverage for underlying suits alleging a trust beneficiary harmed his condominium neighbors by using and manufacturing meth.

  • February 05, 2024

    Insurer, Pharmacy Settle Horse Death Coverage Dispute

    A coverage dispute between an insurer and a veterinary pharmacy over defense and indemnity for an underlying action involving the deaths of two horses was settled between the two parties Monday in Texas federal court.

  • February 05, 2024

    Fla. Legislative Session: Property Insurance Bills Roundup

    Florida lawmakers have put forward dozens of proposals to address insurance challenges in the state, from a bill that would expand coverage from the state's last resort insurer to another that contemplates mangroves as bulwarks against flooding.

  • February 05, 2024

    JCPenney Cardholder's Proposed $5M Insurance Suit Fails

    A JCPenney credit card holder who bought health insurance through a promotion tied to the card lost her bid in Mississippi federal court Monday to continue her $5 million proposed class action over what she believed were intentional delays in paying for her hospital stay.

  • February 05, 2024

    No CGL Coverage For Home Depot Data Breach, 6th Circ. Told

    Two insurers have told the Sixth Circuit they owe no commercial general liability coverage to Home Depot for its $172 million settlement with financial institutions over a 2014 breach of customer payment information, arguing an electronic data exclusion wholly barred coverage for the institutions' claimed losses.

Expert Analysis

  • Establishing A Record Of Good Faith In Mediation

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    Viacom v. U.S. Specialty Insurance, and other recent cases, highlight the developing criteria for determining good faith participation in mediation, as well as several practical tips to establish such a record, says Richard Mason at MasonADR.

  • Using ChatGPT To Handle Insurance Claims Is A Risky Move

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    ChatGPT gets some insurance law questions surprisingly wrong, and while it handles broader coverage concepts significantly better, using it to assist with coverage questions will likely lead to erroneous results and could leave insurers liable for bad faith, says Randy Maniloff at White and Williams.

  • Del. Ruling Could Affect D&O Claims Beyond SPACs

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    A Delaware state court recently held in Clover Health v. Berkley Insurance that directors and officers of a post-merger entity were insured persons under a special-purpose acquisition company's D&O policy, a ruling that could have potential ramifications for future D&O claims in Delaware outside of SPAC deals, say Geoffrey Fehling and Janine Hanrahan at Hunton.

  • A Missing Issue In 'Blank Space' Insurance Ruling

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    As Norwegian Hull Club v. North Star heads to trial in Florida federal court, the most interesting part of the court opinion denying summary judgment is the argument it doesn't address — contra proferentem, which could have been used to resolve the case's blank space ambiguity in the policyholder's favor, say Jeffrey Mikoni and Scott Greenspan at Pillsbury.

  • High Court Ax Of Atty-Client Privilege Case Deepens Split

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    The U.S. Supreme Court's recent dismissal of In re: Grand Jury as improvidently granted maintains a three-way circuit split on the application of attorney-client privilege to multipurpose communications, although the justices have at least shown a desire to address it, say Trey Bourn and Thomas DiStanislao at Butler Snow.

  • The Wide Oversight Implications Of Del. McDonald's Ruling

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    The Delaware Chancery Court's recent ruling that a McDonald's officer had oversight obligations on par with directors has wide-reaching implications for Delaware corporate law, including precedent for the court to hear sexual harassment claims, say attorneys at Fried Frank.

  • How Courts Are Clarifying D&O Policies' Bump-Up Provisions

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    The Seventh Circuit's recent decision in Komatsu Mining v. Columbia Casualty provides long-awaited appellate guidance on the inadequate consideration provision in directors and officers insurance — and the Fourth Circuit may provide more in its forthcoming ruling in Towers Watson v. National Union Fire Insurance, says Andrew Paliotta at Cozen O’Connor.

  • Crypto Coverage After FTX Fall: Crime And Custody Coverage

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    Cryptocurrency firm FTX's recent implosion provides a case study for potential crypto exposure under traditional insurance policies, and suggests carriers should ask some basic underwriting questions, including whether a company engages in transactions involving cryptocurrencies or holds digital assets in custody, says Anjali Das at Wilson Elser.

  • Wis. High Court Ruling May Open Door To Coverage Exception

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    The Wisconsin Supreme Court’s recent decision in Dostal v. Strand finding that an insurer had to defend a civil action following the defendant's criminal conviction on the same facts nonetheless may suggest an exception to the complaint test for determining an insurance company's defense obligation, say David Hollander and Clementine Uwabera at Stafford Rosenbaum.

  • Crypto Coverage After FTX Fall: Accountant And Atty Liability

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    The recent fall of cryptocurrency firm FTX highlights complexities regarding accounting and tax reporting for digital assets, and reveals lawyers’ potential liability exposure when providing services to crypto firms — as a result, insurers may face unintended vulnerabilities related to this nebulous landscape, say Anjali Das and Farzana Ahmed at Wilson Elser.

  • Anticipating Tech Market Volatility With R&W Policies

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    Technology executives, investors and their advisers should understand how representations and warranties insurance works ahead of a potential rise in claims activity and as deal makers focus on maximizing existing deals' value amid economic uncertainty, says Eric Larson at Morris Manning.

  • Crypto Coverage After FTX Fall: D&O Liability

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    The fallout surrounding the recent implosion of cryptocurrency firm FTX highlights potential crypto coverage exposure — including in the area of directors and officers liability — for insurance carriers in the evolving and largely misunderstood world of digital assets, says Anjali Das at Wilson Elser.

  • Litigation, Compliance And Enforcement In The 'Crypto Winter'

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    In 2022, cryptocurrency valuations plummeted, litigation proliferated and the "crypto winter" led to several high-profile bankruptcies, resulting in novel factual and legal questions being raised in areas like general commercial litigation, intellectual property, securities, bankruptcy, cybersecurity and compliance, say attorneys at Arnold & Porter.