I recently moderated a Bar Association of San Francisco Insurance Section program co-sponsored with the Cannabis Law Section. The program highlighted recent changes to local insurance requirements and market availability of coverage for cannabis businesses. Local insurance requirements vary greatly by city and county, and it is important to take this into account—especially if you will be doing business throughout California. While certain coverages are still unavailable (i.e., true outdoor crop insurance) or prohibitively expensive…

Policyholder Perspective

Farella Braun + Martel Insurance Recovery Partners Participate in American College of Coverage Counsel Annual Meeting

By Tyler Gerking & Mary McCutcheon on May 13, 2019

Tyler Gerking was inducted as a Fellow of the American College of Coverage Counsel’s 7th Annual Meeting in Chicago, Illinois on May 9, 2019. Mary McCutcheon presided over the meeting as she completed her term as President of the College. The American College of Coverage Counsel (ACCC), established in 2012, is the preeminent association of U.S. and Canadian lawyers who represent the interests of insurers and policyholders. The ACCC’s membership currently stands at over 300 Fellows.…

Policyholder Perspective

“That Particular Part” – Yet More

By David Smith on April 30, 2019

Massachusetts Appeals Court Gets It Right – Mostly Hot on the heels of the Federal Tenth Circuit Court of Appeals’ decision in MTI, Inc. v. Employers Insurance Company of Wausau, __ F.3d __, 2019 WL 321423 (10th Cir. 2019) (about which I wrote earlier this month), the Appeals Court of Massachusetts also found that the phrase “that particular part” as used in exclusions j(5) and j(6) in the CGL policy must be applied narrowly. In…

Policyholder Perspective

Damages for Permit Revocation Constitute Covered “Loss of Use”

By Shanti Eagle on April 25, 2019

Insurers often claim “economic damages” are not covered under a standard commercial general liability (CGL) policy. The Fourth District Court of Appeal’s decision in Thee Sombrero, Inc. v. Scottsdale Ins. Co., 28 Cal. App. 5th 729, 736 (2018) review and request to depublish denied (Jan. 30, 2019), demonstrates that “loss of use” can be measured by “economic damages”—i.e., loss in profit or diminution in value—so long as they are tied to a property interest. In…

Policyholder Perspective

The 10th Circuit Correctly Construes “That Particular Part” Narrowly

By David Smith on April 11, 2019

We do not often write about coverage opinions from jurisdictions as far away as Oklahoma; however, a recent case from the Federal Tenth Circuit looked at one of our favorite topics and came out with a much better reasoned opinion than recent decisions from the Ninth Circuit. I’ve written before on the topic of the meaning of “that particular part” as the phrase is used in exclusions j(5) and j(6) of the Commercial General Liability…

Policyholder Perspective

Ninth Circuit Asks the California Supreme Court to Interpret the Scope of Personal Injury Coverage

By Mary McCutcheon on March 12, 2019

On January 15, 2019, the Ninth Circuit certified the following question to the California Supreme Court: Does a commercial liability policy that covers “personal injury,” defined as “injury… arising out of… [o]ral or written publication… of material that violates a person’s rights of privacy,” trigger the insurer’s duty to defend the insured against a claim that the insured violated the Telephone Consumer Protection Act by sending unsolicited text message advertisement that did not reveal any…

Policyholder Perspective

Claims-Made Policy Note: Policy’s Use of Defined Terms May Expand or Limit Coverage Under Related Acts Provision

By Nathan Anderson on March 7, 2019

In an unpublished decision, the Ninth Circuit affirmed the Central District of California’s interpretation of the related acts provision in a professional liability policy, holding that related acts reported in a prior policy period were not excluded from coverage in a subsequent period because that policy defined “Policy Period” to mean only the current policy period, not any policy period. Attorneys Insurance Mutual Risk Retention Group, Inc. v. Liberty Surplus Ins. Co., No. 17-55597 (9th…

Policyholder Perspective

Are You Covered for California’s New IoT Laws?

By Tyler Gerking & David Smith on January 4, 2019

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In November, Tyler wrote about insurance issues raised by both the European Union’s General Data Protection Regulation (GDPR) and the California Consumer Privacy Act, which goes into effect on January 1, 2020. California’s governor Jerry Brown signed two other cyber-related laws in September, which will also go into effect on January 1, 2020 – Assembly Bill 1906 and Senate Bill 327, which address security concerns relating to devices that are capable of connecting to the…

Policyholder Perspective

Evicting Tenants Over “Illegal” Cannabis Operation Comes Back to Bite Landlords in Coverage Dispute

By Shanti Eagle on December 13, 2018

A 6th Circuit case decided earlier this year demonstrates how positions taken by insureds in prior litigation can impact or foreclose coverage in subsequent disputes with insurers. See K.V.G. Properties, Inc. v. Westfield Ins. Co., 900 F.3d 818 (6th Cir. 2018). In K.V.G. Properties, Inc., K.V.G., was unaware that its tenant was operating a cannabis growing operation. Although Michigan allowed for limited legal marijuana cultivation, there was no evidence the tenant was in compliance…

Policyholder Perspective

Keeping Up With the Risks and Protections of Cyber Insurance

By Tyler Gerking on November 6, 2018

shutterstock_113739760-Protection Level High

An obscure niche product less than a decade ago, cyber insurance is now a staple of many companies’ risk transfer programs. Its rise in prominence is no wonder. High-profile data breaches have caused businesses millions of dollars in losses and untold reputational harm. Companies are right to shed some of their cyber risks through insurance, and the basic protections it offers are well known. It pays for the business’s investigation and notification to consumers of…

Policyholder Perspective

Insights and Issues in Commercial Insurance Coverage

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Insurance for the Cannabis Industry Program Takeaways

Farella Braun + Martel Insurance Recovery Partners Participate in American College of Coverage Counsel Annual Meeting

“That Particular Part” – Yet More

Damages for Permit Revocation Constitute Covered “Loss of Use”

The 10th Circuit Correctly Construes “That Particular Part” Narrowly

Ninth Circuit Asks the California Supreme Court to Interpret the Scope of Personal Injury Coverage

Claims-Made Policy Note: Policy’s Use of Defined Terms May Expand or Limit Coverage Under Related Acts Provision

Are You Covered for California’s New IoT Laws?

Evicting Tenants Over “Illegal” Cannabis Operation Comes Back to Bite Landlords in Coverage Dispute

Keeping Up With the Risks and Protections of Cyber Insurance

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