Hunton Andrews Kurth LLP

As the new year gets under way, cases that will shape the insurance landscape in 2019 continue to proceed.  Among them are First Acceptance Ins. Co. v. Hughes, in which the Georgia Supreme Court will address the prerequisites for a policyholder to sue its insurance carrier for bad faith based on the insurer’s failure to settle the underlying dispute for an amount within the available policy limits.  Hunton Andrews Kurth’s insurance practice head, Walter Andrews, was asked by Insurance Law360 to comment on the significance of that case.  As Andrews explained, the insurer’s position is inconsistent with Georgia law.  “Georgia law does not require some particular form of settlement offer — or even an offer at all — to create an insurer’s duty to settle claims against their insureds.” Rather, as Andrews explained, “that duty arises when the insurer knows or reasonably should know that not settling will create an ‘unreasonable risk’ of the insured suffering a judgment in excess of his or her policy limits, regardless of whether a third-party claimant has first presented a settlement offer. Most often, that should be a jury question and not something that is susceptible to summary judgment.”
Continue Reading Hunton Insurance Head Comments on Insurance Cases to Watch in 2019

In a recent Client Alert, Hunton insurance lawyers Mike Levine, Sergio Oehninger and Josh Paster discuss the impact of the Second Circuit’s recent opinion in Patriarch Partners, LLC v. Axis Insurance Co., where the Court confirmed that a warranty letter accompanying the policyholder’s insurance application barred coverage for a lengthy SEC investigation. The decision underscores the importance of understanding how a policy’s language and definitions impact the scope of information that policyholders must consider when representing facts and circumstances in insurance applications. The opinion left intact the lower court’s finding that the SEC subpoena constituted a “demand for non-monetary relief” and thus qualified as a “Claim” under the directors and officers (D&O) insurance policy. The Second Circuit and Southern District’s rulings in Patriarch confirm that government subpoenas or civil investigative demands constitute a “Claim” that ought to trigger coverage under fairly standard D&O policy language. Policyholders facing government subpoenas, civil investigative demands, or other formal or informal government demands should not hesitate to seek coverage for such costs under their D&O insurance policies.

Read the full alert here.

Hunton Insurance Coverage attorneys Syed Ahmad and Geoff Fehling contributed to the firm’s Recall Roundup, a monthly publication canvassing consumer product and retail recalls and related litigation.  In the October issue, Ahmad and Fehling discuss two recent decisions with potentially broad implications.  In Lake Country Foods, Inc. v. Houston Casualty Co., No. 18-CV-734 (E.D. Wis. filed May 11, 2018), nutritional supplement manufacturer Lake Country Foods, Inc., (“LCF”) filed an insurance coverage complaint seeking to enforce its rights under a product contamination policy issued by Houston Casualty Company (“HCC”) arising from a salmonella contamination incident.  In the October Recall Roundup, Ahmad and Fehling discuss the potential impact that the insurer’s counterclaims seeking reimbursement of the approximately $1.2 million advance payment it made in response to the alleged salmonella contamination incident might have on the pending insurance recovery dispute.

Continue Reading Hunton Insurance Coverage Team Weighs In On Recent Contamination and Recall Insurance Disputes

In a win for policyholders, a California appellate court has held that the loss of use of property resulting from alleged negligence constitutes property damage under a liability insurance policy.

Continue Reading California Appeals Court Says Loss of Use Is “Property Damage” Under Liability Policy, and Damages Can be Measured by Diminished Value

The head of Hunton Andrews Kurth’s insurance practice, Walter Andrews, was interviewed earlier this week by ABC 7 (WJLA) concerning the need for cyber insurance and the benefits that it can provide to government contractors and other businesses that are impacted by a cyber event.  Andrews explains the diverse spectrum of benefits that are available through cyber insurance products, but cautions that a serious lack of uniformity exists among today’s cyber insurance products, making it crucial that policyholders carefully analyze their cyber insurance to ensure it provides the scope and amount of insurance they desire.

Continue Reading Hunton Insurance Head Interviewed Concerning the Benefits and Hidden Dangers of Cyber Insurance

Hunton insurance attorneys Syed Ahmad and Patrick McDermott recently wrote a chapter on insurance law in the District of Columbia to the newest edition of the District of Columbia Practice Manual. The chapter of the Practice Manual, in its 26th edition, is available here and now covers topics including the duties to defend and indemnify, insurers’ defenses to coverage, allocation issues, bad faith, policy interpretation principles, and coverage for cyber events.

Hunton Andrews Kurth insurance practice head, Walter Andrews, recently commented to the Global Data Review regarding the infirmities underlying an Orlando, Florida federal district court’s ruling that an insurer does not have to defend its insured for damage caused by a third-party data breach.

Continue Reading Hunton Insurance Head Comments On Hotel Data Breach Coverage Dispute

Hunton Andrews Kurth insurance recovery associate, Andrea (Andi) DeField, was recently named among the 40 outstanding lawyers under the age of 40 in South Florida.  Andi has wasted no time using her status to help raise awareness and money for cystic fibrosis research.

On September 27, Andi attended the Cystic Fibrosis Foundation 40 Under 40 kickoff, an event held annually for the past 10 years to honor the best and brightest lawyers in the South Florida community while raising much-needed funds to support the Foundation’s mission.  The awards gala will be held on November 10, 2018. Andi is now part of a dedicated committee comprised of present and former honorees and other leaders in the legal industry.  Together, Andi and her colleagues hope to raise the funds necessary to someday eradicate cystic fibrosis.

Andi’s fundraising website can be found here.  Please consider helping Andi support this very worthwhile cause.

Hurricane Florence will affect the U.S. east coast later this week with significant damage to property and resulting business disruption.  Businesses far-removed from the impact zone also will be affected as manufacturing, retail, travel and supply chains, among other industries, are disrupted by the physical damage.  For those in the impact zone, knowing the fundamentals about your property insurance is critical.  For those in remote locations, now is a good time to refresh yourself as well, since post-storm disruptions and losses require prompt notice to insurers and fast action to help mitigate any resulting loss.  A failure on either front could jeopardize coverage.

Continue Reading As Florence Eyes East Coast, Are You Looking At Your Insurance?