Tag Archives: Duty to Defend

Insurer Must Pay Post-Merger Defense Costs Under Merged Entity’s D&O Policy

Corporate policyholders should carefully consider insurance coverage implications when structuring mergers, acquisitions, or other transactions that may impact available insurance assets. A New Jersey federal court recently granted summary judgment for a surviving bank asserting coverage rights under a D&O policy issued to an entity that dissolved in a statutory merger, based in part on … Continue Reading

Hunton Insurance Lawyers Analyze How Ninth Circuit’s Recent Lakers Opinion Impacts Future Coverage for TCPA Claims

On August 29, 2017, my colleagues Lawrence J. Bracken, Michael Levine, and Geoffrey Fehling published an article in Law360 discussing the Ninth Circuit’s recent decision rejecting coverage for the Los Angeles Lakers’ director’s and officer’s (D&O) insurance claim arising from a fan’s class action lawsuit under the Telephone Consumer Protection Act (TCPA), based on a … Continue Reading

Hunton Insurance Lawyers Analyze How Second Circuit’s Recent Opinion Regarding Employer’s Liability Exclusion Impacts Hospitality Industry Insureds

Liability insurance policies generally have an exclusion barring coverage for claims brought by the insured’s own employees. Many times, especially in the hospitality industry, a liability insurance policy provides coverage for various different companies. A common question is whether claims brought by an employee of one insured against another insured are covered under such a … Continue Reading

District Court Unlocks Carrier’s Duty to Defend Key Maker’s Product Disparagement Claims

A Colorado district court held last week that a general liability insurer must defend a product disparagement claim despite a broadly-worded intellectual property exclusion in the policy. The court reached its ruling even though the alleged disparagement involved representations about patent infringement. In so holding, the court rejected the insurer’s attempt to deny coverage where … Continue Reading

The Ball Is In Their Court: U.S. Insured May Have To Litigate Insurance Coverage Dispute In China

Dick’s Sporting Goods (“DSG”) sued a Chinese insurer, PICC Property and Casualty Company Limited Suzhou Branch (“PICC”), seeking coverage under a products liability insurance policy for personal injury claims arising out of a burst exercise ball. In Dick’s Sporting Goods, Inc. v. PICC Prop. & Cas. Co. Ltd. Suzhou Branch, No. 2:16-cv-01635-DSC-RCM (W.D. Pa. July … Continue Reading

District Court Rejects Insurer’s Attempt to Recoup Defense Costs, Citing Defective Reservation of Rights

A Georgia district court recently denied an insurer’s attempt to recoup defense costs, holding that even where the court previously determined that coverage was barred under the policy’s pollution exclusion, the insurer could not “rewrite the record” or clarify its “defective” reservation of rights letters to show that it fairly informed the policyholder of its … Continue Reading

Examining the Restatement of the Law, Liability Insurance

In 2015 and 2016, we discussed certain provisions of the then drafts of the Restatement of the Law, Liability insurance, including the Duty to Cooperate, here, and Duty to Defend, here and here. In late May 2017, the American Law Institute met to approve the Proposed Final Draft—the culmination of over seven years of work … Continue Reading

Defense Of Hazing Claims Against College Student Covered Under Parents’ Homeowners’ Policy

Policyholders are often surprised to hear that their policies cover more than the run-of-the-mill claim. For example, a general liability policy may cover a cyber-related loss. See our prior post. As a more recent example, a federal court in South Carolina found that a parent’s homeowners’ policy obligated an insurer to defend a college student … Continue Reading

Possibility That Claim Sounds In Negligence Is Enough To Circumvent Liability Policy’s “Contract” Exclusion

On December 6, 2016, a Connecticut appellate court held that a contract exclusion in a public entity errors and omissions liability insurance policy did not relieve the insurer’s duty to defend when there was at least a possibility of coverage based on the allegations against the insured. The court reasoned that the fact finder could … Continue Reading

Policy Endorsement Trumps Exclusion But Also Renders Policies Excess To Other Available Coverage

On November 2, 2016, a federal judge in California ruled that a Real Estate Property Managed endorsement in policies issued to a real estate manager negated a standard policy exclusion, but also rendered the policies excess to other available insurance. The case involved a dispute over coverage for a bodily injury claim involving “Pigeon Breeders … Continue Reading

Business Expense Reimbursement Not Limited by EPLI “Wage-and-Hour” Exclusion

On November 14, 2016, a federal judge in California denied summary judgment to Hanover Insurance Co. (Hanover), finding that class claims alleging a failure to reimburse reasonable business expenses were not excluded by a “wage-and-hour” exclusion contained in EPLI policies issued by Hanover. The lawsuit, brought by a former student of the Bellus Academy beauty … Continue Reading

Professional Services Exclusion Limited To The Actual Rendering Of Professional Services; Other Aspects Of Business Not Barred

A US District Court has ruled that a Professional Services Exclusion in a D&O policy does not bar coverage for suits alleging that a network of for-profit career colleges engaged in false marketing regarding the quality of education and job prospects that enrollees would receive. The decision in Education Affiliates Inc., et al. v. Federal … Continue Reading

Forever 21 Suit Cut from “Potentially Covered” Cloth: Alleged Copycat’s Insurer Required to Defend Trademark Litigation with Affordable Fashion Behemoth

In June, Syed S. Ahmad and I published an article in Risk Management Magazine about how commercial general liability (CGL) policies may help with trademark infringement litigation, despite common exclusions. A recent federal court opinion out of California conforms with the precedent we described in that article, holding that the insurer, Great Lakes Reinsurance (UK) … Continue Reading

FLOOD WARNING: Are You Covered?

Last week’s torrential rains have caused widespread flooding in West Virginia and surrounding areas. It is important that policyholders in these and other areas remain mindful of the substantial benefits that may be available to them for resulting economic and physical losses under ordinary business insurance policies. Policyholders also should be mindful of the interplay … Continue Reading

Policyholders Can Confirm Coverage Before Underlying Adjudication, Says Eleventh Circuit

The Eleventh Circuit confirmed in First Mercury Insurance Company v. Excellent Computing Distributors, Inc., No. 15-10120 (11th Cir. Apr. 20, 2016), that policyholders need not await adjudication of underlying liability litigation before obtaining a confirmation of coverage. The decision arose from a declaratory judgment action concerning the availability of insurance coverage for an underlying negligence … Continue Reading

Hunton Lawyers Analyze Insurance for Real Estate Liability Concerns

An article by Hunton lawyers Walter Andrews and Mike Levine, titled Insurance Planning for 2016: Top Ten Real Estate Liability Concerns, was recently published in the Spring 2016 issue of The Real Estate Finance Journal. The article addresses ten recurring liability concerns facing real estate professionals, investors, developers, lenders, owners and managers, and the associated … Continue Reading

If a Data Breach Occurs and Nobody Reads It, Does It Constitute “Publication”?

Syed Ahmad, a partner in the Hunton & Williams LLP insurance recovery practice, was quoted in an article by Law360 concerning the Fourth Circuit’s April 11, 2016 decision in Travelers Indemnity Company v. Portal Healthcare Solutions, No. 14-1944. In the decision, a panel of the Fourth Circuit affirmed the decision of a Virginia district court, … Continue Reading
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