Specialty Lines

  • 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.

  • February 12, 2024

    Consulting Firm Says Ex-Partner Stole Captive Insurance Biz

    A consulting firm that assists in establishing captive insurance companies told a Colorado federal court that its former business partner breached its contract by working behind the firm's back to snag its clients and sabotage its business relationships, depriving the firm of both business opportunities and potential commission.

  • February 12, 2024

    Panel Slams Life Insurer's 'Extreme' View Of Child Benefits

    A California appeals court panel challenged a life insurer's "extreme" view that its policy was limited to biological children and excluded coverage for the murdered child of the policyholder's fiancée, reinstating several of the parent's claims that were dismissed by a lower court.

  • February 12, 2024

    Three-State Test Critical To Evaluating Carrier Climate Risk

    An analysis finding that insurers' investment portfolios are at risk of losing billions of dollars under delayed climate-transition plans is an important step to fully understanding how well carriers' business activities are aligned with climate goals, experts say.

Expert Analysis

  • Insurance Tips For Mitigating DOJ Cyber Initiative Risks

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    For companies and executives involved in False Claims Act actions alleging cybersecurity failures like those envisioned by the U.S. Department of Justice's new cyber fraud initiative, certain insurance policies could help defray the substantial costs of defense and even settlement liability, say attorneys at Hunton.

  • M&A Rulings Provide Guidance On 'Bump-Up' Claim Coverage

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    As M&A activity continues to surge, several recent federal court decisions can guide companies in structuring their insurance programs and assessing whether so-called bump-up claims arising from particular M&A transactions may be covered, say Robin Cohen and Orrie Levy at Cohen Ziffer.

  • BIPA Ruling Should Aid Insurers In Privacy Claims

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    Massachusetts Bay Insurance v. Impact Fulfillment Services, a recent decision by a North Carolina federal court finding that a Biometric Information Privacy Act claim was precluded under an insurance exclusion, represents a potentially significant win for insurers due to its broadly applicable contract interpretation, say Joshua Polster and Conor Mercadante at Simpson Thacher.

  • Insurers Should Honor Astroworld Coverage Obligations

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    While insurers may be eager to shift blame on Astroworld showrunner Travis Scott for conditions that resulted in 10 deaths and dozens of injuries, arguments suggesting the tragedy shouldn't be covered appear baseless in light of the facts and the law, says Benjamin Massarsky at Miller Friel.

  • Ransomware Case Signifies Shift In Cyber Insurers' Stance

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    The pleadings in a recently settled California federal court case, Boardriders v. Great American Insurance, show that cyber insurers are taking an adversarial approach to ransomware-related claims in the wake of increasing attacks, so policyholders should anticipate new policy language, claim-payment avoidance and more, say Lynda Bennett and Michael Scales at Lowenstein Sandler.

  • Cyber Rulings Aren't Helping COVID Biz Interruption Cases

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    Where policyholders have recently tried to draw comparison between the loss of property use from a COVID-19 shutdown order and the loss of data use from a ransomware attack, they have found courts unsympathetic to these arguments for business interruption insurance coverage, say Jane Warring and Kristian Smith at Zelle.

  • Insurance Commissioner's Agenda: NY On Industry Diversity

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    My Chi To, executive deputy superintendent of the New York State Department of Financial Services Insurance Division, discusses steps her agency is taking to promote diversity, equity and inclusion within the insurance industry and suggests practices for companies to consider adopting.

  • FCA Ruling Guides Insureds On Classifying Restitution Costs

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    In Astellas v. Starr Indemnity, an Illinois federal court recently held that a False Claims Act settlement qualified as insurable compensatory damages, not uninsurable disgorgement, providing an important guide to policyholders navigating the tax code's deductibility requirements and insurance policy exclusions, say attorneys at Reed Smith.

  • Subpoena Defense Cost Ruling Gets Insurance Law Wrong

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    A Connecticut federal court's recent decision that National Union Fire Insurance Co. of Pittsburgh didn't need to cover defense costs for a power utility's response to a grand jury subpoena included two crucial mistakes that contravene long-standing insurance law principles, say attorneys at Hunton.

  • Insurance Commissioner's Agenda: DC On Long-Term Care

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    Washington, D.C., Insurance Commissioner Karima Woods outlines the development of insurance coverage for older adults' long-term care benefits and how regulators and the industry are attempting to resolve issues with the popular product.

  • 5 Buyers' Counsel Tips For R&W Insurance Underwriting Calls

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    With representations and warranties insurance becoming more popular than ever, buyers' counsel participating in underwriting calls for such insurance should follow certain best practices to secure contracts with minimal exclusions, say Bryan O'Keefe and Gena Usenheimer at Seyfarth.

  • When A Denial Of Recovery-Based Insurance Claim Is Invalid

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    Two recent court decisions show that policyholders should not accept denials of coverage based on the uninsurability of restitution or disgorgement-based losses without a detailed, two-part analysis of the specific state's law and the particular facts of the loss, say Stephen Raptis and Emily Buchanan at Haynes and Boone.

  • Insurance Commissioner's Agenda: Del. Tackles Mental Health

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    Delaware Insurance Commissioner Trinidad Navarro highlights the state's efforts to achieve insurance coverage parity for mental health care by confronting systemic stigma and penalizing disparate and restrictive insurance determinations.