In Babcock & Wilcox Co. v. American Nuclear Insurers, a divided Supreme Court of Pennsylvania, deciding an issue of first impression under Pennsylvania law, recently held that when an insurer defends its insured subject to a reservation of rights, the
Risk and Recovery
Legal Insights for the Insured
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Montana Joins Majority of Courts Holding That Insurers Must Establish Prejudice to Disclaim Coverage Based on an Insured’s Late Notice
Joining a majority of states that have addressed the issue, the Montana Supreme Court recently held that “an insurer who does not receive timely notice required by the terms of an insurance policy must demonstrate prejudice from the lack of…
Policyholder Warning: What One Provision Giveth (Defense Costs), Another Provision May Taketh Away
Professional liability insurance policyholders often breathe a sigh of relief when their insurer begins funding the costs of defending against a civil claim or government investigation. That is one of the reasons they bought the insurance in the first place!…
Louisiana Supreme Court Holds That Statute May Confer Broad Duties On Insurers
In Kelly v. State Farm Fire & Casualty Co., the Supreme Court of Louisiana recently held that an insurer can be liable for bad faith failure to settle a claim even if it has not received a firm offer to…
Bank Bond Covers Third-Party Losses Arising out of Bank Employee’s Fraud, Eighth Circuit Holds
Fidelity bonds are purchased primarily to protect against loss to the policyholder’s own assets, from things like employee theft or embezzlement. In Avon State Bank v. BancInsure, Inc., however, the Eighth Circuit interpreted the language of a bank’s…
New Jersey State Court Rules Damage Caused by Superstorm Sandy Not Subject to Flood Sublimit
In a decisive victory for policyholders, Judge Thomas Vena of the Essex County Superior Court in New Jersey ruled that significant damages incurred by Public Service Enterprise Group Inc. (“PSEG”) as a result of storm surge flooding caused by Superstorm…
Protecting Directors and Officers From Derivative Liability Arising From Data Breaches
With data breaches affecting companies across virtually every industry, cyber security has remained front page news. Lawsuits brought by aggrieved consumers and financial institutions against companies that have suffered data breaches are not uncommon. Increasingly, companies are also being subjected…
Mississippi Supreme Court Limits Broker Liability Where Insured’s Conduct Is Uninsurable
When an insurance claim is denied, policyholders sometimes look to their broker as a potential source of recovery. Generally speaking, a broker owes its client the duty to procure the scope of coverage requested. When a broker fails to do…
Divided New York Court of Appeals Holds That Under Noncumulation Clause Only One Limit Is Available to Cover Multiple Claims
In Nesmith v. Allstate Insurance Co., New York’s highest court, over a two-judge dissent, held that under the noncumulation clause in a landlord’s liability policy, only one limit was available to cover claims by children from different families who…
Special Event: March 3 @ Noon ET
Managing the Risk of Cyber Liabilities and Operations Disruption: Responsibilities of the Board of Directors
Tuesday, March 3, 2015
Noon – 1:00 p.m. ET
11:00 a.m. – Noon CT
9:00 a.m. – 10:00 a.m. PT…