When obtaining insurance coverage, businesses must be wary of policy exclusions that are so broad that they defeat the policy’s primary purpose and render coverage illusory. In Travelers Property Casualty Company of America v. H.E. Sutton Forwarding Co., LLC, No. 2:21-CV-719-JES-KCD, 2023 WL 5486746 (M.D. Fla. Aug. 24, 2023), the U.S. District Court for the Middle District of Florida considered this very issue in deciding when a policy exclusion goes too far.Continue Reading Air Horse One: Florida Sets a High Bar to Find Insurance Coverage Illusory
On August 21, 2023, Southern California was hit by its first tropical storm since 1997. The remnants of Hurricane Hilary brought record-breaking rainfall and knocked out power for thousands of Californians. This storm follows devastating wildfires in Maui, which killed over 110 people, and hot tub temperatures off the coast of Florida: the ocean reached 101 degrees (it should be just 74-88 degrees). The ocean’s record temperatures may strengthen the severity and prolong the season of this year’s hurricanes, which already plague Florida. According to an Accuweather meteorologist, the warm weathers are “just inviting a big system to hit the state again this year.” His prediction may prove true: Tropical Storm Idalia, expected to strengthen into a major hurricane, is scheduled to hit Tampa on Wednesday.Continue Reading Record-Breaking Temperatures, Record-Breaking Claims: The Importance of Risk Mitigation to Reduce Severe Weather Costs
In a COVID-19 insurance coverage lawsuit that Hilton Worldwide Holdings, Inc. filed against several insurers in Nevada state court, two recent rulings in favor of Hilton highlight the importance of strategic decisions early in a case. Continue Reading Nevada State Court Rulings Highlight Importance of Strategic Decisions Early in a Case
Hurricane Ian is rapidly approaching the west coast of Florida and is expected to make landfall as a Category 4 hurricane near the Tampa area within the coming days. While the exact track is still being determined, there is a chance the storm may also impact insureds in Georgia and South Carolina. Now is the…
Harvard College and Zurich American Insurance Company have been embroiled in an insurance coverage dispute for over a year regarding Zurich’s obligation to cover Harvard’s hefty defense bills incurred defending its affirmative action admissions policy, which is presently before the U.S. Supreme Court. Last week, the world-renowned university told a District of Massachusetts court that it should deny Zurich’s motion for summary judgment because questions of fact remain unresolved. Harvard also accused Zurich of inappropriate discovery gamesmanship by withholding documents and information. …
Continue Reading Harvard Declares Class is in Session: Tells Court Zurich’s Motion for Summary Judgment Must Be Denied and Accuses Zurich of Playing Games
In what is an unfortunate sign of the times, Springpoint Senior Living, Inc. recently sued its insurers in New Jersey federal court claiming they abruptly stopped covering Springpoint’s defense costs after doing so for nearly a decade. A copy of the complaint can be found here. Springpoint’s allegations are emblematic of a growing trend among insurers taking drastic measures to avoid coverage, which is no doubt in response to the tightening economic conditions and looming recession around the globe. …
Continue Reading A Sign of the Times: Policyholder Forced to Sue Insurers to Resume Payment of Defense Costs
Another state court has issued a ruling favoring insurance policyholders in a COVID-19 business interruption dispute. This decision further confirms the trend of state courts recognizing the potential for coverage where many federal courts have not.
Continue Reading Another State Court Rules That Insurers Cannot Escape COVID-19
As previously reported on the Hunton Employment & Labor Perspectives Blog, workers’ compensation provides the exclusive remedy for injuries and illness that employees suffer arising out of and within the course of their employment. Workers’ compensation provides the exclusive remedy for injuries and illness that employees suffer arising out of and within the course of their employment. In the early stages of this pandemic, work-related travel to high impact countries or work-related exposure in a case that was being tracked by public health authorities provided support for work-related exposure. In healthcare settings, work-related exposure will likely be established when exposure to infected patients occurs. But in other settings and as the diseases spreads in the United States, the analysis about whether an illness is covered by workers’ compensation will be more difficult.
Continue Reading Workers Compensation, Insurance, and COVID-19
In an important decision for policyholders, a New York state appellate court rejected AIG’s effort to avoid defending McGraw-Hill in a series of copyright suits. In doing so, it reversed the trial court and rejected the insurer’s attempted use of the contract exclusion and fortuity doctrine as a bar to coverage under various multimedia liability insurance policies.
Continue Reading New York Appeals Court Finds Contract and Conduct Exclusions No Bar to Defense of Publisher’s Copyright Claims
Insurance companies frequently raise the so-called “dishonesty” exclusion that is typically found in most professional liability and directors and officers insurance policies. Last week, the U.S. Court of Appeals for the Sixth Circuit took a substantial step toward curtailing that practice. In a coverage dispute with eight-figure implications, the appellate court found in favor of the policyholder and ruled that publishing false statements does not equate to dishonesty and thus is not sufficient to support application of a dishonesty exclusion.
Continue Reading Sixth Circuit Reverses Insurer’s Overly Broad Application of “Dishonest Acts” Exclusion