The rule courts generally employ to interpret undefined words in insurance policies — essentially, to look to the words’ plain or ordinary meaning — sounds simple. However, many times, there is more than one meaning of such words, lending 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.
Latest from Risk and Recovery - Page 4
New York State Court Rules That Darwin Has Duty to Defend but AIG Does Not, for Same Risk, Based on Differing Policy Language
New York state court Judge Shirley Werner Kornreich recently ruled that American International Group, Inc. (“AIG”) didn’t have to pay certain defense costs for various suits brought against QBE Holdings, Inc. and its affiliates (collectively, “QBE”), but that QBE’s other…
Insurer’s Liability for Breach of Contract Is Not a Condition Precedent to Insured’s Bad Faith Claim
A Florida appeals court recently held in Cammarata v. State Farm Florida Insurance Co. that an insured is not required to show that its insurer breached the insurance policy before it can bring a claim for bad faith. Although the…
New Ridesharing Legislation Highlights Insurance Uncertainty in Emerging Industries
Pennsylvania Supreme Court Denies Review of Faulty Workmanship Decision
Last week, the Pennsylvania Supreme Court let stand the appellate decision in Indalex, Inc. v. National Union Fire Insurance Co. of Pittsburgh, Pa., which held that mold related health problems and property damage allegedly arising from defective doors and windows…
Illinois Court Holds That Coverage for Malicious Prosecution Claim Is Triggered When the Prosecution Is Commenced, Not When It Is Terminated
An Illinois appellate court recently held in St. Paul Fire and Marine Insurance Co. v. City of Zion that coverage under a law enforcement liability policy for a malicious prosecution claim is triggered when the wrongful prosecution is commenced, not…
Excess Insurance Triggered Despite Policyholder’s Settlement with Primary Insurers for Less than Policy Limits
When faced with a catastrophic loss triggering multiple layers of coverage and recalcitrant insurers at the primary layer, a policyholder has strong incentives to settle with the first-layer carriers for less than the full limits of that layer, cover the…
Calling a Letter a “Reservation of Rights” Does Not Necessarily Make It So
Many insurers are in the habit of sending perfunctory “reservation of rights” letters to their insureds throughout the lifetime of a claim. The reason they do so is not a very well-guarded secret in the insurance industry. An insurer that…
Sixth Circuit Says Misappropriation of Customer List Not Insured Under Advertising Injury Liability Coverage
The Sixth Circuit Court of Appeals recently ruled that Liberty Corporate Capital did not have to defend a firearms retailer in a lawsuit alleging that the retailer improperly obtained and used its competitor’s customer list to send e-mail blasts about…
Fourth Circuit Holds That Insurer Waived Right to Rescind Commercial Property Policy
A powerful weapon in any policyholder’s arsenal is the potential to argue that an insurer waived its right to rescind a policy or deny coverage. Successfully arguing waiver may allow a policyholder to obtain coverage even where it is alleged…