Specialty Lines

  • February 22, 2024

    Lumber Co., Insurer To Settle $4.9M Coverage Dispute

    A subcontractor and its professional liability insurer have reached a settlement in principle on about $5 million in underlying claims over moldy, defective wooden framework the subcontractor supplied to a senior living project, the parties told a Florida federal court.

  • February 21, 2024

    NY Judges Question Lehman's Bid To Undo CDS Trial Loss

    A panel of New York appeals court judges on Wednesday appeared reluctant to undo a bench trial loss Lehman Bros.' bankrupt European unit suffered last year in a suit attempting to clawback nearly half a billion dollars from Assured Guaranty over alleged losses on credit default swaps tied to the 2008 financial crisis.

  • February 21, 2024

    Justices Told NRA Speech Claim Would Thwart Regulation

    The ex-head of New York's financial regulator has told the U.S. Supreme Court her statements advising companies to consider their relationships with the National Rifle Association following the 2018 mass shooting in Parkland, Florida, didn't violate the First Amendment, rejecting the NRA's position that the statements were a "veiled threat."

  • February 21, 2024

    11th Circ. Says Sotheby's Insured For Fla. Agent Theft Row

    An Eleventh Circuit panel affirmed Wednesday that an insurer must defend One Sotheby's International Realty against allegations that its agent bamboozled married Russian investors into selling their Miami Beach-area condo at below market value, eventually stealing $3.7 million in sale proceeds.

  • February 21, 2024

    Justices Back Choice-Of-Law In Marine Insurance Suit

    An insurer can enforce choice-of-law provisions in a marine insurance policy it issued to the owner of a yacht that ran aground, the U.S. Supreme Court said Wednesday in a decision upholding long-standing maritime law principles of uniformity and certainty.

  • February 20, 2024

    Insurer Must Pay Defense Costs In Newspaper Shooting Row

    An insurer owed coverage to the parent companies of a Maryland newspaper for the legal fees resulting from two underlying lawsuits brought by the victims and their families after a 2018 mass shooting, an Illinois federal judge ruled Tuesday.

  • February 20, 2024

    Casinos Say 'Unique' Policy Should Cover $130M COVID Loss

    A casino operator with properties on the Las Vegas Strip and beyond told a Nevada federal court that its "unique" all-risk insurance is the broadest available coverage and should pay for $130 million in business interruption losses caused by the COVID-19 pandemic.

  • February 20, 2024

    Pharma Co. Can Get D&O Coverage For Securities Suit

    A pharmaceutical company that developed a drug for rare genetic blood disorders is covered under a recent directors and officers policy for a securities class action, a Delaware state court ruled, rejecting its insurers' contention that the action was related to an SEC subpoena and thus fell under an older policy. 

  • February 16, 2024

    Insurer Seeks To Cancel $15M Policy Over 'Human Life Wager'

    A life insurance company has urged a New Jersey federal court to void a $15 million policy it calls an illegal "human life wager" on a man whose death benefits a bank, rather than his own family.

  • February 16, 2024

    Therapy Co.'s Policy Lie Bars Fraud Coverage, 4th Circ. Says

    A defunct child therapy practice is not entitled to coverage for suits accusing one of the practice's employees of pretending to be licensed, the Fourth Circuit affirmed in a published opinion Friday, saying a material misrepresentation in the clinic's insurance applications warrants rescission of the policy.

  • February 15, 2024

    Damaged Champagne Cargo Row Can Proceed, Judge Says

    A New Jersey federal judge preserved the majority of a $930,000 coverage dispute over a damaged champagne shipment Thursday, denying a logistics company's bid for dismissal while giving an insurer the opportunity to put forth an alternate pleading.

  • February 15, 2024

    Club, Insurer Resolve Fiduciary Breach Coverage Row

    A country club owner, various club board members and Selective Insurance Co. agreed to dismiss their dispute Thursday in Massachusetts federal court over coverage for breach of contract and fiduciary duty claims that club investors lodged in arbitration, resolving the coverage case after reaching a settlement in January.

  • February 15, 2024

    Software Company Seeks $10M Policy Limit For Bad Deal

    A software company told a California federal court that its insurer breached its contract by failing to cover $10 million in damages suffered because of misrepresentations made by a property and casualty insurance software company it bought.

  • February 15, 2024

    Oil Trader Says Cargo Storage Expenses Are Covered

    An oil and gas trader slammed Liberty Mutual's attempt at an early win in a $2.4 million coverage dispute over losses related to a contaminated oil shipment, telling a New York federal court Thursday it is entitled to recover both barge storage expenses and attorney fees.

  • February 14, 2024

    Insurer Needn't Defend Landlord From Antitrust MDL

    A Washington state judge has ruled in favor of an insurer in a coverage dispute revolving around nearly 40 antitrust class action claims against landlords that have been combined into a multidistrict litigation case, finding that the insurer owes no defense coverage to an accused property manager.

  • February 14, 2024

    Contractor Owes $13M To Cover Virus Defaults, Insurer Says

    A Michigan-based insurer asked a Florida federal court Wednesday to grant a default final judgment in its indemnification suit against a contractor, seeking to force the company to cough up nearly $13 million to reimburse payments against its surety bonds and protect the insurer from future claims.

  • February 14, 2024

    Bed Bath & Beyond Execs Given Access To $10M In Insurance

    An insurer for bankrupt housewares retailer Bed Bath & Beyond will cover up to $10 million in legal costs incurred by company executives who were subpoenaed or named as defendants in litigation connected to the store, a New Jersey bankruptcy court said.

  • February 14, 2024

    Progressive Unit Seeks Win Against Uber, Widower Of Driver

    A Progressive unit asked a North Carolina federal court Wednesday to grant it a win in its attempt to get out of providing coverage for an UberEats driver who was killed in a car crash, asserting that its policy for Uber doesn't cover injuries caused by uninsured or underinsured motorists.

  • February 14, 2024

    Miami Law Firm Not Covered In Overbilling Row, Judge Says

    An insurer does not have to defend a Miami law firm in a lawsuit accusing it of overbilling a client, a Florida federal judge has ruled, finding that the underlying allegations do not constitute professional services as defined by the firm's policy.

  • February 13, 2024

    Insurers Must Pay Pharma Co. Defense Costs In SEC Probe

    A drug development company formed by a merger is entitled to insurance payments for expenses it paid two of its former officers in connection with federal subpoenas because the insurer failed to show that an exclusion applied, a California federal judge ruled Monday.

  • February 13, 2024

    CEO Needn't Consent To CFO's Settlement, NY Court Says

    A sporting goods company's former CEO does not get a say in the former CFO's $2.8 million settlement with a liquidating trust just because they're both insured under the same directors and officers policy, a New York federal judge ruled, calling the ex-CEO's interpretation of the policy "unreasonable and illogical."

  • February 13, 2024

    Insurer Wants Security Cos. To Repay Assault Defense

    An insurer said it does not owe coverage to two security service companies facing several lawsuits filed by grocery store customers who claim they were battered by security guards, telling a California federal court that the companies owe it reimbursement because their policies don't cover bodily injuries.

  • February 13, 2024

    OpenText Wants Out Of Class Action Coverage Suit

    OpenText told a Michigan federal court it should be dismissed from an insurer's suit seeking to avoid coverage of a class action from former Covisint shareholders alleging an unfair merger, saying it's not involved in the underlying case and its only alleged connection is that it acquired outstanding Covisint stock.

  • February 13, 2024

    Life Insurer Failed To Secure Data From Hack, Class Says

    A life insurance provider and its parent company failed to protect sensitive customer information from a data breach, a proposed class action told an Indiana federal court, saying the parent company was hacked via a SIM swapping scheme targeting a senior employee.

  • February 12, 2024

    Insurer Says No Coverage For Idaho Murderer And Family

    A mentally ill suspected cannibal and his wealthy mining family do not have insurance coverage for a wrongful death suit brought on behalf of a murdered, mutilated groundskeeper and his family, the insurer told an Idaho federal court.

Expert Analysis

  • Assessing NFT Insurance Coverage Options And Gaps

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    Because non-fungible tokens do not come bundled with insurance policies, and until NFT-specific insurance policies become more common, NFT owners should proactively protect against risk by drawing upon existing frameworks, despite potential coverage gaps, say Brian Scarbrough and Edward Crouse at Jenner & Block.

  • Insurer Implications As 3 Climate Suits Return To State Courts

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    Three federal circuit courts recently remanded climate change lawsuits brought by state and local governments against major energy corporations back to state courts, where plaintiffs are more likely to succeed, thus significantly increasing their insurers' and reinsurers' exposure to defense costs and judgments, say José Umbert and Jason Reeves at Zelle. 

  • 6 Rulings Reinforce BIPA Coverage For Illinois Policyholders

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    Six well-reasoned recent decisions in the Northern District of Illinois have considerably strengthened policyholders’ arguments for commercial general liability coverage in lawsuits brought under the Illinois Biometric Information Privacy Act, say attorneys at Neal Gerber.

  • How Boards Can Address Insurance-Based Caremark Risk

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    Recent bankruptcy proceedings, such as Purdue Pharma's, highlight that insurance is critical to ensuring an organization's solvency and ability to pay claimants, making it important for boards to prioritize adequate insurance and risk-management as core Caremark responsibilities, say attorneys at Cooley.

  • 4th Circ.'s Allen Trust Opinion: A New Class Action Primer

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    The Fourth Circuit's recent opinion in Allen Trust v. Banner Life Insurance is likely to become an oft-cited instruction manual for Rule 23(b)(3) class action certification and settlement in the circuit, because of how it effectively addresses the three major issues that dominate class action litigation, say David Anthony and Justin Golart at Troutman Pepper.

  • What Microcaptive Reporting Ruling May Mean For The IRS

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    In CIC v. Internal Revenue Service, a Tennessee federal court’s decision to set aside an IRS requirement to disclose microcaptive insurance arrangements may be a step toward evidentiary standards to show that the potential for abuse in a lawful transaction is sufficient to support heightened disclosure requirements, says Samuel Lauricia at Weston Hurd.

  • 7 Policy Terms Defensive IP Coverage Buyers Should Note

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    To maximize defensive intellectual property insurance — coverage that will defend and indemnify the insured against suits alleging infringement — the technology startups driving the post-pandemic economic recovery should be focusing on specific terms within the manuscripted policies, says Micah Skidmore at Haynes and Boone.

  • 3 Insurance Lessons From Target Data Breach Ruling

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    In Target v. ACE American Insurance, a Minnesota federal court recently recognized that commercial general liability policies cover losses arising from data breaches, providing useful lessons for policyholders, including a perspective on occurrence and loss of use, say attorneys at Pasich.

  • Del. Related Claims Ruling Is Good News For Insurers

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    The Delaware Supreme Court recently denied coverage for a shareholder class action in First Solar v. National Union First Insurance, rejecting the test for assessing relatedness-based coverage issues, and opening the door for insurers to rely on specific policy wording when evaluating related claims, say attorneys at Troutman Pepper.

  • How Sonic Boom Risk Informs 'Physical Loss' For COVID Era

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    Applied to today's COVID-19 business interruption insurance battles, insurers' historical treatment of damage associated with sonic booms — or explosive sounds stemming from supersonic airplane speeds — may call into question the many court rulings barring coverage for pandemic-related losses on narrow physical loss grounds, say Peter Kochenburger at the University of Connecticut and Jeffrey Stempel at University of Nevada, Las Vegas.

  • Justices Must Apply Law Evenly In Shadow Docket Rulings

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    In recent shadow docket decisions, the U.S. Supreme Court has inconsistently applied the requirement that parties demonstrate irreparable harm to obtain injunctive relief, which is problematic for two separate but related reasons, says David Hopkins at Benesch.

  • Preparing For New Mandatory Cyber Reporting Rules

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    The requirements of a new federal law mandating cyber incident reporting for critical infrastructure will not become operational for several months, but affected companies should begin assessing whether their response plans incorporate critical policies and procedures to ensure compliance, say Steven Stransky at Thompson Hine and Lacy Rex at Oswald Companies.

  • What Cos. Can Glean From Early Cyber Policy Cases

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    Insurance claims for cyberattacks under cyber-specific policies have thus far been less contested than claims brought under commercial, crime and professional liability policies, however that may be changing, as cyber losses and liabilities continue to escalate and the market hardens, says Daniel Healy at Anderson Kill.