Archives: Insurance Coverage

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Misrepresentation Results in Loss of Coverage

One of the best ways for a policyholder to lose its insurance coverage is to conceal or misrepresent material facts and circumstances about the claim.  In a recent case, the Sixth Circuit Court of Appeals affirmed summary judgment in favor of the insurance company dismissing a policyholder’s claims against its insurance carrier for not paying … Continue Reading

Extrinsic Evidence Leads to Summary Judgment on Aggregate Corridor Deductible

Some insurance programs are simple:  one primary policy, one excess policy.  Easy.  Some insurance programs are complex and contain many layers and coverages.  In the case discussed below, the court had to interpret how an Aggregate Corridor Deductible (ACD) in one policy worked and how it affected when the second policy came on risk.… Continue Reading

Does Physical Loss or Damage Include Loss of Use, Reliability or Impaired Functionality?

Cyber attacks on computer systems have spawned myriad coverage disputes over whether the data stored on the computer system tangible property that comes within property insurance coverage or whether the computer system has to be rendered unusable.  As cyber attacks have grown and morphed from hacking to ransomware to other types of intrusions, and as … Continue Reading

Court Finds No Insurance Coverage for TCPA Settlement

What happens when the Expected or Intended Exclusion and the Information Exclusion bump up against a policyholder’s suit for breach of contract, bad faith and improper denial of a claim based on an alleged TCPA violation?  You’ll have to visit our blog post on TCPAWorld.com to find out.  Suffice it to say that the insurance … Continue Reading

Binding Arbitration Award In Coverage Dispute Ends Later Coverage Litigation

Many insurance policies have binding arbitration clauses along with other provisions that address whether a lawsuit may be brought against the insurance company.  What happens when the arbitration goes against the policyholder?  Can the policyholder then sue the insurance company over the same coverage dispute even if the arbitrator ruled against the policyholder?… Continue Reading

Claims By Tort Claimants Against Municipal Insurer Over Coverage for Sexual Abuse Dismissed By Federal Court

Typically, a claimant has no direct right of action against an insurance company especially prior to a judgment against the insured.  Even more typically, a claimant has no right to “cut-through” to the reinsurers based on an alter ego or fronting claim when the claimant is not the insured and is not in contractual privity.  … Continue Reading

Fore! Golf Sponsor’s Claims Against Insurance Agency on Hole-in-One Insurance Dismissed

Prize sponsors often procure insurance policies to reimburse them for prize payouts.  Generally, those policies are pretty specific about the criteria that allows for the reimbursement.  Hole-in-one insurance is particularly popular.  In a recent case a policyholder sought relief against its insurance agent on various theories after it lost its coverage battle because of an … Continue Reading

The (Rock) Finer Points of the Absolute Pollution Exclusion

The pollution exclusion has had a long history of being interpreted by the courts throughout the US.  Many substances have been held to come within the pollution exclusion, resulting in a bar of insurance coverage for costs sustained by policyholders addressing those substances in waterways and the air.  In a recent case, the Fifth Circuit … Continue Reading

Violation of Statute Exclusion Bars Coverage Under Umbrella Policy

Many general liability polices contain an exclusion for violations of certain statutes involving the sending or communicating of information like the Telephone Consumer Protection Act (“TCPA”).  The question a federal court in North Dakota faced was whether debt collection practices came within the statutory violation exclusion.… Continue Reading

The Top 10 InReDisputesBlog Posts for 2019

Below are the top 10 blog posts from our Insurance & Reinsurance Disputes Blog for 2019.  These are the ones our readers viewed the most last year on our blog. The compilation is diverse as is the topic of insurance and reinsurance disputes.  Please enjoy this stroll down memory lane.  If you like these and … Continue Reading

It’s Always a Good Idea to Read Your Insurance Policy

Among the basic rules of insurance are these two:  (a) always read your policy and (b) courts will construe clear and unambiguous insurance policy language by giving it its ordinary and plain meaning. This is the lesson that a policyholder learned after filing a claim for windstorm damage to his roof.  The question was whether … Continue Reading

No Coverage to Builder for Beetle-Infested Logs

Nearly all construction jobs require that the contractor purchase insurance.  Commercial general liability insurance (“CGL”) is often what is purchased.  CGL policies also typically have an exclusion for property damage to “your work.” In a recent case, the Ninth Circuit Court of Appeals addressed this exclusion in a case of damage caused by beetle-infested logs … Continue Reading

Policyholder Denied Discovery Into Handling of Other Insureds’ Superstorm Sandy Losses

Superstorm Sandy was a complicated loss because of its unique nature and the controversy over when it was a hurricane and whether damage caused by it was while it was a hurricane.  Many property policies have sublimits and deductibles specific to hurricanes or “named storms” or for flood losses.  How these sublimits or deductibles apply … Continue Reading

Lawyer Not Covered for Claim By Client to Recover Disputed Legal Fees

Did you hear the one about the lawyer and client fighting over paid legal fees?  When this happens lawyers often turn to their lawyers professional liability insurance policies for coverage.  In a recent case, under Connecticut law, the Second Circuit ruled against the lawyer and found no coverage.… Continue Reading

Appellate Court Grants Summary Judgment Obligating Coverage for Underlying Copyright Actions

In a recent cryptic coverage decision, a New York state intermediate appellate court reversed an order denying summary judgment to a media policyholder and held that the insurance companies were obligated to provide insurance coverage for underlying copyright infringement actions.  Although cryptic, the decision addresses exclusions and their applicability to media insurance policies.… Continue Reading

Eleventh Circuit Finds Duty to Defend Sufficient to Rebuff Claim of Illusory Auto Insurance Coverage

Some people who lease cars apply for car insurance with lower limits for themselves and higher limits to cover the leasing company’s requirements.  This is accomplished through a Lessor Liability Endorsement.  In a recent case, a putative class action was brought against insurance companies by lessees who sought damages alleging that the coverage provided was … Continue Reading

Security! Professional Services Exclusion Bars Coverage

In my experience, companies (and people) who buy insurance often do not understand what they bought.  Policyholders often confuse directors and officers insurance with professional liability insurance.  The assumption is that the purchase of insurance (often through a broker) should cover all of the policyholder’s risks.  Sadly, that is not the case.  In a recent … Continue Reading

Absolute Liquor Liability Exclusion Is Not Illusory

General liability policies sometimes contain exclusions that preclude coverage for losses that relate to the business insured.  Whether that renders the policy coverage illusory is a question for the courts.  In a recent case, the 11th Circuit addressed an Absolute Liquor Liability Exclusion involving a night club.… Continue Reading

Phishing and Fraudulent Instructions Under a Commercial Crime Policy

Warnings are plentiful about phishing schemes where a bad actor pretends to be an officer of a company and directs an employee to wire transfer funds to a foreign bank.  Despite these warnings, employees regularly fall for these phishing schemes and wire funds to off-shore accounts never to be seen again.  Companies that fall victim … Continue Reading

Strict Conditions Doom Flood Insurance Claim

The National Flood Insurance Program has been controversial to say the least.  Part of the program allows commercial insurance companies to act as agents for the federal government in producing Standard Flood Insurance policies and managing claims under a write your own program (“WYO”).  The program, under its enabling law, the National Flood Insurance Act, … Continue Reading

Foundations, Basement Walls and Collapse — Connecticut Supreme Court Rules Against Coverage

Homeowners in Connecticut (and other states) have had issues with crumbling foundations and basement walls of their homes due to defective concrete manufactured by a specific supplier.  They have turned to their homeowners insurance policies for coverage and coverage has been denied.  Multiple lawsuits have been brought.  In a series of recent cases, the Connecticut … Continue Reading

Late Notice and Timely Disclaimer Sink Claim to Recover Judgment From Insurers

Under New York law (and the law of other jurisdictions), an unsatisfied judgment against an insured may be the subject of an action to recover the judgment against the insurance company.   Sounds simple, but the claimant, standing in the shoes of the policyholder, will be subject to all the defenses the insurance company can bring … Continue Reading
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