On Monday, President Barack Obama signed into law a six-year extension of the Terrorism Risk Insurance Program after the House and Senate passed the bill by votes of 416-5 and 93-4, respectively. As we previously reported, Congress’ failure to
Risk and Recovery
Legal Insights for the Insured
The Risk and Recovery blog, published by Proskauer Rose LLP, focuses on legal issues related to insurance coverage, risk management, and recovery strategies. It covers topics such as insurance claims arising from property damage, business interruption, and liability issues including subcontractor defects and cyber-security breaches. The blog also addresses evolving case law on insurance policy interpretation, coverage gaps in directors and officers (D&O) and employment practices liability insurance (EPLI), and the enforceability of policy clauses like anti-assignment provisions. It provides insights on managing risks associated with natural disasters, corporate liability, and emerging legal challenges in insurance and risk recovery.
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Policyholders Face Uncertainty after Lapse of Terrorism Risk Insurance Program
Congress’ failure to renew the Terrorism Risk Insurance Program Reauthorization Act (“TRIPRA”), a 2007 extension of the 2002 Terrorism Risk Insurance Act, could have significant implications for companies that rely upon property or casualty policies to manage risk. TRIPRA expired…
Texas Supreme Court Denies Policyholder’s Discovery Regarding Claims Handling
It is rare to see a state’s highest court address a discovery issue. But the Supreme Court of Texas did just that recently in In re National Lloyds Insurance Co., holding that a policyholder’s demands for discovery about how…
Texas Federal Court Clarifies Broad Scope of Professional Liability Policies for Lawyers
Lawyers may be surprised to learn that lawsuits brought by clients challenging something other than purely legal advice or advocacy—such as billing—may not be covered by their professional liability policies. Interpreting the phrases “professional services” and “legal services” in such…
Eleventh Circuit Requests Assistance in Interpreting Consent-to-Settle Provision
Most cases in the United States settle. Insurers are well-aware of this fact. Thus, insurance companies employ consent-to-settle provisions in insurance policies to limit and control their liability in the likely event of a settlement involving policyholders. Essentially, consent-to-settle provisions…
More “Texas Justice” For Policyholder On Contractual Liability Exclusion
On October 29, the Fifth Circuit reversed itself for the second time this year in a case involving the interpretation of a contractual liability exclusion in a CGL policy. This recent decision by the Fifth Circuit in Crownover v. Mid-Continent…
California Federal Courts Tell Insurers Not to Jump the Gun in Suing Policyholders for Reimbursement
In a series of opinions issued over the past few months, federal judges in California have reiterated that insurers must wait until they are finished defending their policyholders before they sue those policyholders for reimbursement of defense costs. While California…
Third Circuit Holds That Insured Must Reimburse Insurer For Litigation Costs Paid In Excess Of Sub-limit
In CAMICO Mutual Insurance Co. v. Heffler, Radetich & Saitta, L.L.P., the United States Court of Appeals for the Third Circuit recently held that a $100,000 sub-limit for claims involving employee misappropriation, misuse, theft or embezzlement in a claims made…
Pennsylvania Court Recognizes That A Payment Required By Law Is Not A “Voluntary Payment” Requiring The Insurer’s Consent
If you are required by law to perform an act, the act is not “voluntary.” This proposition may seem obvious enough to most, but one insurer recently needed to be reminded of this common sense point by a Pennsylvania federal…
“Prior or Pending Litigation” Exclusion Bars Coverage for Litigation that Was Unknown to Policyholder
Companies that do business with the federal government, or whose business transactions otherwise involve payments by the government, undoubtedly understand the exposure they face to “whistleblower” or “Qui Tam” lawsuits brought by private individuals on behalf of the government alleging…