Specialty Lines

  • January 17, 2024

    Insurer Owes $900K In Coverage For Mold Cleanup, Court Told

    A contractor told a North Carolina federal court that its insurer wrongly denied coverage for nearly $900,000 in mold remediation expenses it incurred on a building project, asserting that the insurer conflated its standalone environmental legal liability policy with a different policy.

  • January 17, 2024

    1.3M Loan Holders Hit By Cyberattack, Revised Action Says

    A data breach class action claim against Fidelity National Financial and LoanCare LLC was revised on Wednesday after a Florida federal judge found that the original seven-count complaint, filed in late December, constituted an impermissible “shotgun pleading."

  • January 17, 2024

    Feds Ask Justices For Narrow Ruling In NRA Case

    The federal government filed an amicus brief in a First Amendment dispute between the National Rifle Association and a former New York state official, urging Supreme Court justices to reject some of the gun rights group's broader arguments because they raise "harder questions."

  • January 17, 2024

    No Coverage For HOA In Trade Secret Theft Suit, Court Told

    An Illinois homeowners association and its property managers are not entitled to coverage for an underlying action brought by the development's golf course operator accusing the association of downloading proprietary information, an insurer told a federal court, saying the incident doesn't meet the policy's definition of an occurrence.

  • January 17, 2024

    No Coverage For New York Ghost Gun Suits, AIG Unit Says

    An AIG unit told a New York federal court it should have no duty to cover a firearm retailer in three lawsuits by the state attorney general and municipalities alleging that the retailer knowingly sold unfinished components that would be assembled into so-called ghost guns.

  • January 16, 2024

    5th Circ. Revives Southwest Airlines' Cyber Coverage Suit

    The Fifth Circuit on Tuesday revived Southwest Airlines' coverage fight against Liberty Insurance over costs stemming from a 2016 computer network failure, saying the district court was wrong in finding that the costs fall outside the coverage range of an excess cyber risk insurance policy.

  • January 16, 2024

    Sports Co. Wants Coverage Apart From CEO Accused Of Rape

    A sports equipment company asked a Washington federal judge Tuesday not to conflate it with its CEO when determining whether to allow an insurer to escape defending the leader and his company against underlying sexual assault allegations.

  • January 16, 2024

    Insurance Adjuster Says Ex-Employees Stole Clients, Intel

    An insurance adjuster accused five ex-employees of colluding with a competitor to steal the company's clients, telling a Mississippi federal court that the employees breached their agreements with the company — including noncompetes — to benefit the competitor.

  • January 16, 2024

    Cement Co. Rips Insurer Bid To Slip Demurrage Fee Coverage

    A Houston-based cement supply company challenged Liberty Mutual's attempt to avoid paying coverage for more than $780,000 in demurrage charges incurred during cleanup of a shipping mishap, telling a Louisiana federal court the charges are a proper expense under a so-called sue and labor clause.

  • January 16, 2024

    Coverage Case Over Defective Miami Highway Heads To Trial

    A joint venture tasked with a Miami bridge and highway project will have its day in court against an insurer that refused to cover more than $3.6 million in construction defects, a Florida federal court found.

  • January 16, 2024

    Insurer Drops Suit Against Nonresponsive, Defunct Co.

    An insurer dropped its 2-month-old coverage lawsuit against a defunct Houston-based engineering firm for asbestos exposure-related claims, saying the company neither appeared nor asserted any counterclaims.

  • January 12, 2024

    Cyberattack On Insurer Compromised Over 64K, Suit Says

    The private information of over 64,000 individuals was compromised in a data breach of a construction industry insurer, according to a proposed class action filed against the company in North Carolina federal court.

  • January 12, 2024

    AIG Unit Says No Coverage Left For Helicopter Crash Suit

    An AIG unit told an Alaska federal court that it owes no defense to a mountain resort or its owners for claims brought by the surviving passenger of a heli-skiing crash, saying it already settled with the plaintiff for any coverage it could provide.

  • January 12, 2024

    Insurer Disclaims Institutional Furniture Makers' Patent Spat

    Companies accused in underlying litigation of stealing designs from a patent holder and falsely advertising molded plastic furnishings meant for use in prisons and psychiatric facilities shouldn't have defense coverage against the allegations, an insurer told an Illinois federal judge Friday.

  • January 12, 2024

    Axis Loses Reconsideration Bid In Prior Knowledge Dispute

    Axis Insurance Co. must continue to face a cashless payment company's breach of contract claim that is slated for a jury in its suit seeking excess coverage for underlying securities actions, a Pennsylvania federal judge ruled, saying a dispute remains over what the company knew when it entered into the policy.

  • January 12, 2024

    Insurer Seeks To Toss Challenge To Bombing Coverage Award

    A Nashville, Tennessee, property owner can't proceed with an amended suit claiming an umpire's bias invalidates an appraisal award in a coverage dispute over damage caused by a Christmas Day bombing in 2020, a Zurich unit told a federal court, saying the company failed to state a claim for relief.

  • January 11, 2024

    Electronic Waveform Says Travelers Owes It $1.3M

    A Minnesota medical device manufacturer has told a federal court that insurer Travelers has been intentionally down-coding a pain management device popular among professional athletes in order to underpay the company, resulting in a loss of $1.3 million.

  • January 11, 2024

    House Bill Would Create National Reinsurance Program

    The U.S. Department of the Treasury would administer a new national reinsurance program under a $350 billion proposal that would also provide grants for risk-mitigation activities and cash payments for low-income consumers.

  • January 11, 2024

    Agency Tells 9th Circ. To Ax Insurer Win In Poaching Suit Row

    A talent agency's fight with Markel over coverage of claims that the agency poached a competitor's agents and clients has returned to the Ninth Circuit, with the agency asking the appeals court to overturn a lower court's second ruling in favor of the insurer.

  • January 11, 2024

    Insurer Says Resident's Rape In Memory Ward Not Covered

    A dementia facility accused of covering up a rape of a resident by another patient shouldn't have defense coverage against an underlying suit brought by the resident and her family, its insurer told an Alaska federal judge.

  • January 11, 2024

    Divorce Pauses Husband, Wife IP Row Over Insurance Co.

    The North Carolina Business Court halted a lawsuit alleging the husband of an insurance agency owner stole her business records to benefit his newly formed company while keeping $3 million meant for her, reasoning the case will be affected by divorce proceedings the two are going through.

  • January 11, 2024

    Doctor, Insurers Agree To End Wiretap Coverage Suit

    A former University of Pittsburgh Medical Center surgeon has settled with his insurers in a suit seeking coverage for defense in a fellow surgeon's wiretapping and defamation action against him, according to a stipulation of dismissal filed in Pennsylvania federal court.

  • January 11, 2024

    Nationwide Wins Dismissal After Pruning Billing Class Action

    Nationwide defeated a proposed class action brought by a Pennsylvania man who was seeking confirmation that the insurer was wrongly denying medical benefits related to vehicle crash injuries, with a Pennsylvania federal judge ruling that his breach of contract allegations were insufficient to survive dismissal.

  • January 10, 2024

    Foster Org. Not Covered In Child Neglect Suit, Insurer Says

    Philadelphia Indemnity Insurance Co. asked a Missouri federal court Wednesday to rule that it does not have to defend a foster care nonprofit and one of its employees from a suit alleging they were negligent in the abuse and death of a 3-year-old.

  • January 10, 2024

    Coverage Fight Over Ad Infringement Suit Stays In Fed. Court

    A Minnesota federal judge refused Wednesday to send a dispute over coverage of a copyright infringement suit settlement back to state court, finding the policyholder's mailing of service to the wrong address meant its insurer's removal to federal court could proceed.

Expert Analysis

  • How Boards Can Address Insurance-Based Caremark Risk

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    Recent bankruptcy proceedings, such as Purdue Pharma's, highlight that insurance is critical to ensuring an organization's solvency and ability to pay claimants, making it important for boards to prioritize adequate insurance and risk-management as core Caremark responsibilities, say attorneys at Cooley.

  • 4th Circ.'s Allen Trust Opinion: A New Class Action Primer

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    The Fourth Circuit's recent opinion in Allen Trust v. Banner Life Insurance is likely to become an oft-cited instruction manual for Rule 23(b)(3) class action certification and settlement in the circuit, because of how it effectively addresses the three major issues that dominate class action litigation, say David Anthony and Justin Golart at Troutman Pepper.

  • What Microcaptive Reporting Ruling May Mean For The IRS

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    In CIC v. Internal Revenue Service, a Tennessee federal court’s decision to set aside an IRS requirement to disclose microcaptive insurance arrangements may be a step toward evidentiary standards to show that the potential for abuse in a lawful transaction is sufficient to support heightened disclosure requirements, says Samuel Lauricia at Weston Hurd.

  • 7 Policy Terms Defensive IP Coverage Buyers Should Note

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    To maximize defensive intellectual property insurance — coverage that will defend and indemnify the insured against suits alleging infringement — the technology startups driving the post-pandemic economic recovery should be focusing on specific terms within the manuscripted policies, says Micah Skidmore at Haynes and Boone.

  • 3 Insurance Lessons From Target Data Breach Ruling

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    In Target v. ACE American Insurance, a Minnesota federal court recently recognized that commercial general liability policies cover losses arising from data breaches, providing useful lessons for policyholders, including a perspective on occurrence and loss of use, say attorneys at Pasich.

  • Del. Related Claims Ruling Is Good News For Insurers

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    The Delaware Supreme Court recently denied coverage for a shareholder class action in First Solar v. National Union First Insurance, rejecting the test for assessing relatedness-based coverage issues, and opening the door for insurers to rely on specific policy wording when evaluating related claims, say attorneys at Troutman Pepper.

  • How Sonic Boom Risk Informs 'Physical Loss' For COVID Era

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    Applied to today's COVID-19 business interruption insurance battles, insurers' historical treatment of damage associated with sonic booms — or explosive sounds stemming from supersonic airplane speeds — may call into question the many court rulings barring coverage for pandemic-related losses on narrow physical loss grounds, say Peter Kochenburger at the University of Connecticut and Jeffrey Stempel at University of Nevada, Las Vegas.

  • Justices Must Apply Law Evenly In Shadow Docket Rulings

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    In recent shadow docket decisions, the U.S. Supreme Court has inconsistently applied the requirement that parties demonstrate irreparable harm to obtain injunctive relief, which is problematic for two separate but related reasons, says David Hopkins at Benesch.

  • Preparing For New Mandatory Cyber Reporting Rules

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    The requirements of a new federal law mandating cyber incident reporting for critical infrastructure will not become operational for several months, but affected companies should begin assessing whether their response plans incorporate critical policies and procedures to ensure compliance, say Steven Stransky at Thompson Hine and Lacy Rex at Oswald Companies.

  • What Cos. Can Glean From Early Cyber Policy Cases

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    Insurance claims for cyberattacks under cyber-specific policies have thus far been less contested than claims brought under commercial, crime and professional liability policies, however that may be changing, as cyber losses and liabilities continue to escalate and the market hardens, says Daniel Healy at Anderson Kill.

  • A Guide To Extrinsic Evidence In Determining Duty To Defend

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    As the eight-corners rule for the duty to defend is increasingly riddled with exceptions to its strict formulation of confining the analysis to only the language of the insurance policy and the underlying complaint, Richard Mason at MasonADR discusses the newest notable decisions and offers strategies for attorneys litigating the duty to defend.

  • What Insureds Should Look For In Excess Policies

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    A recent California appellate court decision, Truck Insurance Exchange v. Kaiser Cement, demonstrates how courts will protect policyholder expectations against primary insurance carriers' actions that might restrict available excess coverage, and highlights how insureds should be diligent in reviewing excess policies on primary erosion, say Courtney Horrigan and Elizabeth Taylor at Reed Smith.

  • Political Risk Insurance May Help Cos. Hurt By Russian War

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    As Russia’s war on Ukraine causes severe economic fallout, it’s crucial that U.S. companies with operations in the region understand what losses might be covered by their political risk insurance policies, and take steps to ensure that all available coverage is preserved and maximized, says Micah Skidmore at Haynes and Boone.