Specialty Lines

  • February 29, 2024

    Auto Co. Says $50M Policy Endorsement Covers COVID Loss

    An auto parts manufacturer is seeking $50 million in coverage for its COVID-19 pandemic-related losses in North Carolina federal court, claiming its policy's "unique" communicable disease provision was misrepresented when its insurer denied coverage for losses at its Indiana, Ohio, Michigan and North Carolina locations.

  • February 29, 2024

    SVB Parent's Counsel Booted From Fraud Coverage Row

    The bankrupt parent company of Silicon Valley Bank cannot use Farella Braun & Martel LLP as counsel in litigation over the parent company's claims that it alone must be covered for a fraud scheme that caused over $73 million in losses, a North Carolina federal court ruled.

  • February 28, 2024

    BASF Says Insurers Owe Coverage For PFAS Suits

    Major chemical manufacturer BASF Corp. told a South Carolina court Wednesday that 23 insurers should cover thousands of lawsuits that alleged a chemical the company produced for firefighting foam caused pollution and injuries.

  • February 27, 2024

    Egg Co. Not Covered For Avian Flu Losses, Minn. Judge Says

    A Markel unit does not owe coverage to an egg supplier for losses it sustained due to an avian flu outbreak in 2022, a Minnesota federal judge ruled Tuesday, finding that a communicable disease exclusion in a site pollution and environmental policy precluded coverage.

  • February 26, 2024

    Atty's Letter Is Not A Claim For Damages, Del. Justices Rule

    An attorney's presuit letter claiming that Syngenta's herbicide Paraquat caused his clients' Parkinson's disease does not constitute a "claim for damages" under the company's insurance policies with a pair of Zurich units, the Delaware Supreme Court ruled Monday.

  • February 26, 2024

    Ex-Bank CFO Cops To $700K Theft And Life Insurance Scam

    An ex-Eastern International Bank chief financial officer has pled guilty to defrauding the bank out of more than $700,000 to pay his personal expenses, and he admitted to opening life insurance policies in the names of bank employees to benefit his wife, according to the U.S. Department of Justice.

  • February 26, 2024

    Colo. Justices To Hear If Insurers Can Withhold Some Payouts

    The Colorado Supreme Court said Monday it will consider whether the state's insurance code allowed Geico, following unsuccessful settlement attempts, to refuse paying noneconomic damages to a policyholder for his underinsured motorist claim, given what Geico said is the "inherently subjective" nature of such damages.

  • February 26, 2024

    Texas Justices Say $220M Cobalt Deal Is A Loss Under Policy

    A $220 million settlement that now-bankrupt Cobalt International Energy Inc. reached with a group of investors constitutes a loss under the energy company's insurance policies, but the agreement is not binding on Cobalt's insurers to establish coverage, the Texas Supreme Court ruled.

  • February 26, 2024

    Insurance Co. Beats Claims Analysts' OT Exemption Suit

    A life insurance company prevailed against disability claim analysts alleging they were wrongfully denied overtime pay, as an Illinois federal judge tossed their suit because the workers are administrative employees exempt from overtime requirements.

  • February 23, 2024

    State Farm Alleges Health Co. Violated Deal To Drop 366 Suits

    Two State Farm units are accusing an automobile accident-focused healthcare center of wrongly pursuing 366 lawsuits against the insurer despite a settlement agreement State Farm said requires the facility to drop those suits.

  • February 23, 2024

    Insurance Litigation Week In Review

    From maritime contracts’ choice-of-law provisions to a question on how far an agency can steer companies from contracting with controversial groups, the past week saw two insurance-related cases before the U.S. Supreme Court, plus litigation over a mass shooting and a casino operator’s claims that its “unique” policy covers pandemic losses. Here, Law360 recaps the week's top insurance news. 

  • February 23, 2024

    The New BIPA? Attys Warn GIPA Is A 'Live Grenade'

    After notable appellate victories in biometric privacy cases, Illinois plaintiffs have seized upon a previously little-used law protecting workers' genetic privacy, leaving defense attorneys wondering if history will repeat itself and open companies to potentially explosive liability. 

  • February 23, 2024

    4th Circ. Won't Rethink Adviser's Defamation Coverage Denial

    A Fourth Circuit panel declined to reconsider its decision that an investment adviser is not owed coverage under her firm's professional liability policy for an underlying defamation lawsuit.

  • February 23, 2024

    8th Circ. Says Nursing Home Fraudster Owes Supplier $7.6M

    A nursing home company whose owner pled guilty in January to employment tax fraud in a New Jersey federal case must shoulder a $5 million judgment plus interest and fees for bills it failed to pay a medical supply company, an Eighth Circuit panel affirmed Friday.

  • February 23, 2024

    Travelers Can't Duck Payout In Warehouse Fire Reversal

    A New York federal court has rejected Travelers' bid for additional discovery in a coverage dispute involving a textile importer whose goods were destroyed in a warehouse fire, after the Second Circuit vacated the insurer's early win in December and remanded for a judgment in the importer's favor.

  • February 26, 2024

    New York Pandemic Coverage Ruling Offers Few Surprises

    Businesses seeking insurance coverage for their pandemic losses were dealt yet another loss recently by New York's top court, a ruling that didn't surprise attorneys watching to see whether the Empire State might buck the trend of carrier victories.

  • February 23, 2024

    Insurance M&A Partner From Sidley Joins Kirkland

    Kirkland & Ellis LLP has added a corporate partner in its insurance transactions and regulatory and financial institutions practice groups, bringing on a former Sidley Austin LLP attorney who said he "couldn't be more excited" to join the firm's Chicago office.

  • February 26, 2024

    Justices' Maritime Insurance Ruling Retains Tilted Status Quo

    When the U.S. Supreme Court ruled last week that an insurer can enforce choice-of-law provisions in a marine insurance policy it issued to the owner of a yacht that ran aground, it upheld existing practices that give insurers the upper hand over policyholders.

  • February 22, 2024

    9th Circ. Urged To Rethink Hiscox Win Due To Hidden Ruling

    A design and marketing company urged the Ninth Circuit on Thursday to review its decision that an insurer didn't have to cover an $850,000 arbitration award to a former CEO over alleged fraud, arguing that the insurer hid the underlying action's judgment that rejected the proposed fraud language.

  • 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.

Expert Analysis

  • Cultivating Good Relationships With Insurance Regulators

    Excerpt from Practical Guidance
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    Insurers can develop mutually beneficial working relationships with insurance regulators by following some simple tips for streamlining communication, knowing how and when to ask for help, and treating regulatory staff with professional courtesy, says Layna Rush at Baker Donelson.

  • How Ohio Software Ruling Implicates Crypto Insurance Claims

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    The Ohio Supreme Court's recent decision in EMOI Services v. Owners Insurance, holding that software can never be physically damaged, has limited precedential value for property claims, but serious implications for cases involving loss or damage to intangible assets like cryptocurrency and non-fungible tokens, say Jane Warring and Shannon O’Malley at Zelle.

  • 6 Ways To Avoid Compounding Errors When Practicing Law

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    For lawyers and law firms, inevitable human error can lead to claims of malpractice or ethical violations, but the key is to avoid exacerbating mistakes by adding communication failures, conflicts of interest or insurance coverage losses, says Mark Hinderks at Stinson.

  • More Stringent Calif. Claim Law Could Benefit Policyholders

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    Although a new California statute that imposes additional requirements for policyholder presuit demands — effective Jan. 1 — was ostensibly passed as a bad faith liability shield for insurers, used correctly it may provide a more specific road map for plaintiff recovery, says Shanti Eagle at Farella Braun.

  • Sandbagging Issues To Watch In Deal Documents

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    Attorneys at Kramer Levin explore how transactional practitioners address sandbagging in acquisition agreements, the default rules that courts may apply when deal parties are silent on the issue, and how sandbagging comes up in the context of representation and warranty insurance policies and any related special indemnities in acquisition agreements.

  • Ky. Ruling Shows Need For Consistent Insurer Claim Replies

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    The Kentucky Supreme Court's recent ruling in Ashland Hospital v. Darwin Select Insurance, allowing a hospital to continue seeking coverage for a medical malpractice claim, warns insurers against invoking a prior-notice exclusion to bar coverage after previously rejecting a notice of potential claim as insufficient, say Chet Kronenberg and Lindsay DiMaggio at Simpson Thacher.

  • Check This List Twice: 4 Steps To Abate Coverage Concerns

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    This holiday season give your company the gift of following easy administrative steps to avoid the far-too-common clerical errors that could lead to forfeited insurance coverage, say Vivek Chopra and Mattison Kim at Perkins Coie.

  • Lessons On Notice From 7th Circ. Claims-Made Policy Ruling

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    The Seventh Circuit's recent decision in Hanover Insurance v. R.W. Dunteman contains broad lessons for policyholders — as many claims-made policies include similar aggregation and claims notice provisions as the one at issue — on how to preserve coverage, say Brian Scarbrough and Maura Smyles at Jenner & Block.

  • A Recovery Option For Lenders With Planes Stuck In Russia

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    For aircraft lessors considering insurance coverage litigation to recover for losses of equipment leased to Russian airlines, negotiating an assignment of rights may provide a faster pathway to recovery, say David Klein and Jose Lua-Valencia at Pillsbury.

  • Trends And Opportunities In Canada's Insurance M&A Market

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    Laurie LaPalme and Derek Levinsky at Dentons discuss the results of a survey regarding Canada's insurance mergers and acquisitions market, and their expectations for the next year in this space — including an increased focus on accident and sickness insurance, and technology-focused assets.

  • Breach Cases Hint At Liability Coverage For Mobile Losses

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    Although federal courts haven't ruled on whether commercial general liability insurance covers companies' revenue losses when customers cannot use their mobile devices, recent cases involving Target and Home Depot payment card data breaches suggest that coverage may be available, says Morgan Churma at Farella Braun.

  • Insurance Perils For Health Providers Using 3D-Printing Tech

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    As the medical polymer market quickly grows amid burgeoning demand for the 3D printing of medical devices, a recent case involving liability for a 3D-printed dental implant surgery exposes the potential gap in medical malpractice and product liability coverage for health care professionals designing and using these products, says Paul Farquharson at Semmes.

  • Insurance Ruling Provides Lessons On Cyberattack 'Twofers'

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    A recent Minnesota federal court decision, SJ Computers v. Travelers, illustrates how an insurance policy with separate limits for computer fraud and social engineering fraud applies to a cyberattack with both components, say Joshua Polster and Laurel Fresquez at Simpson Thacher.