Following a bench trial, the United States District Court for the Eastern District of Virginia found in The Cincinnati Insurance Co. v. The Norfolk Truck Center that a commercial truck dealer’s social engineering loss arose directly from a computer, thereby triggering the dealer’s computer fraud coverage, notwithstanding that the scheme involved numerous non-computer acts in the causal chain of events.  A copy of the decision may be found here.

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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.

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In responding to a certified question from the Ninth Circuit in T-Mobile USA Inc. v. Selective Insurance Company of America, the Washington Supreme Court has held that an insurer is bound by representations regarding a party’s additional insured status contained in a certificate of insurance issued by the insurer’s authorized agent, even where the certificate contains language disclaiming any effect on coverage.  To hold otherwise, the court noted, would render meaningless representations made on the insurer’s behalf and enable the insurer to mislead parties without consequence.

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A Texas judge has ruled that Hunton Andrews Kurth is entitled to coverage from Great Northern Insurance Co., a unit of Chubb, Ltd. (“Chubb”), for losses its predecessor firm suffered when Hurricane Harvey closed its Houston office and disrupted business in 2017.

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In Ferguson v. St. Paul Fire and Marine Insurance Co., the Missouri Court of Appeals, Western District, found that a public entity liability policy covered the injuries sustained by a man that had been wrongfully convicted, notwithstanding that the policy was issued years after the relevant prosecution.  The court’s ruling is in stark contrast to the Illinois Supreme Court’s recent decision in Sanders v. Illinois Union Insurance Co., No. 124565, 2019 WL6199651 (Ill. Nov. 21, 2019), the subject of a prior blog, where the court found that it was the policies in place at the time of the wrongful prosecution that provided coverage for the offense.  In our earlier blog, we discussed the costly consequences the Sanders decision could impose on policyholders in Illinois.  Although reaching an opposite conclusion than Sanders, Ferguson is based on different policy language and, ultimately, does not appear to be inconsistent with the Sanders decision.  While certainly a welcomed decision from a policyholder’s perspective, Ferguson and Sanders highlight the importance that policy wording can play in defining the scope of an insurance program and how similar factual scenarios can result in drastically different coverages based on seemingly minor differences in policy wording.  A copy of the Ferguson decision can be found here.

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Few areas of New York law as complex and nuanced as the law regarding an insurer’s duties to defend and indemnify.  To help practitioners efficiently navigate this area of the law, Hunton Andrew Kurth insurance attorneys Michael S. Levine and Kevin V. Small authored a Q&A guide published by Practical Law.  The full article is

Illinois National Insurance Company, an AIG Commercial Insurance company, (“AIG”) told a Pennsylvania federal court in a brief opposing summary judgment that it has no duty to defend Hub Parking Technology USA Inc. (“Hub”), a Pittsburgh-area parking technology company, in a third-party complaint alleging a privacy breach that exposed customers’ credit card numbers at Cleveland Hopkins International Airport.

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The Illinois Supreme Court’s recent decision in Sanders v. Illinois Union Insurance Co., 2019 IL 124565 (2019), announced the standard for triggering general liability coverage for malicious prosecution claims under Illinois law.  In its decision, the court construed what appears to be a policy ambiguity against the policyholder in spite of the longstanding rule of contra proferentem, limiting coverage to policies in place at the time of the wrongful prosecution, and not the policies in effect when the final element of the tort of malicious prosecution occurred (i.e. the exoneration of the plaintiff).  The net result of the court’s ruling for policyholders susceptible to such claims is that coverage for jury verdicts for malicious prosecution – awarded in today’s dollars – is limited to the coverage procured at the time of the wrongful prosecution, which may (as in this case) be decades old.  Such a scenario can have costly consequences for policyholders given that the limits procured decades ago are often inadequate due to the ever-increasing awards by juries as well as inflation.  Moreover, it may be difficult to locate the legacy policies and the insurers that issued such policies may no longer be solvent or even exist.  A copy of the decision can be found here.


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On November 12, 2019, a federal court in Kentucky held that a vendor service agreement (VSA) between Live Nation Worldwide Inc. and its security vendor, ESG Security, extended coverage under an insurance policy issued by Secura Insurance to ESG, for Live Nation’s liability arising from a concert at a Live Nation facility.

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