image credit: moolanomy Contractor Not Covered Under Subcontractor’s Policy For Claim By Subcontractor’s Employee. The rules for interpreting a contract, including an insurance policy, require a court to give meaning and effect to every word whenever practicable.  That principle is illustrated by a recent case, Phoenix Baystate Construction Co., Inc. v. First Financial Insurance Company, Massachusetts Appeals Court No. 19-P-743 (Memorandum and Order Pursuant to Rule 1:28, May 18, 2020), in which the use…

image credit: moolanomy Contractor Not Covered Under Subcontractor’s Policy For Claim By Subcontractor’s Employee. The rules for interpreting a contract, including an insurance policy, require a court to give meaning and effect to every word whenever practicable.  That principle is illustrated by a recent case, Phoenix Baystate Construction Co., Inc. v. First Financial Insurance Company, Massachusetts Appeals Court No. 19-P-743 (Memorandum and Order Pursuant to Rule 1:28, May 18, 2020), in which the use…

Image by Vektor Kunst iXimus from Pixabay A bill (Senate No. 2888) currently pending in the Massachusetts Legislature could provide some much needed relief for businesses such that have incurred losses or interruptions due to COVID-19.  The bill would allow businesses to recover under their property damage insurance policies for any loss of business or business interruption from March 10, 2020, when the Governor declared an emergency declaration until it is rescinded. For…

Image by Vektor Kunst iXimus from Pixabay A bill (Senate No. 2888) currently pending in the Massachusetts Legislature could provide some much needed relief for businesses such that have incurred losses or interruptions due to COVID-19.  The bill would allow businesses to recover under their property damage insurance policies for any loss of business or business interruption from March 10, 2020, when the Governor declared an emergency declaration until it is rescinded. For…

Image by TeroVesalainen from Pixabay Insurer Is Still Obligated To Conduct Reasonable Investigation And Make Good Faith Effort To Settle When Liability Is Reasonably Clear. Many professional liability policies provide that the insurer will not settle without the policyholder’s consent.  These consent-to-settle clauses give professionals – engineers, architects, lawyers, and medical professionals, among others – the ability to control the settlement of cases alleging professional negligence. In Rawan v. Continental Casualty Co., SJC-12691 (Mass. 2019)…

Image by TeroVesalainen from Pixabay Insurer Is Still Obligated To Conduct Reasonable Investigation And Make Good Faith Effort To Settle When Liability Is Reasonably Clear. Many professional liability policies provide that the insurer will not settle without the policyholder’s consent.  These consent-to-settle clauses give professionals – engineers, architects, lawyers, and medical professionals, among others – the ability to control the settlement of cases alleging professional negligence. In Rawan v. Continental Casualty Co., SJC-12691 (Mass. 2019)…

Image by Tumisu from Pixabay A recent Massachusetts federal court decision (Stearns, J.) addresses two vexing coverage questions involving Massachusetts coverage law: Does a tort plaintiff have standing to argue in favor of coverage before there is a judgment in the tort plaintiff’s favor? What is an insurer’s duty to defend when the complaint is premised on intentional coverage? The claim against the insured was that the underlying plaintiff was kidnapped and forced into prostitution.…