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Articles Posted in General Liability

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A Payment or Just a Loan? When Your Insurer Asks for Defense Costs Back

Many policyholders assume that if an insurer pays to defend a claim against them, the policyholder will never be asked to pay those costs back. And most often they’re right. But sometimes the insurer may demand that the policyholder pay back some or all of the defense costs. Such insurers…

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Death of Orion—OIC’s Amending Scheme Leaves the Insurer “Mostly” Dead

In The Odyssey, Homer describes Orion as a giant hunter armed with bronze club. As the legend goes, Orion was killed—either by the sting of a great scorpion or by the bow of Artemis—and was placed among the stars, creating the well-known constellation. Orion Insurance Company is now set to…

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A “Suit” by Any Other Name: Ninth Circuit Rules CERCLA 104(e) Letter Triggers Duty to Defend

Recently, we wrote about the breadth of the “duty to defend,” and its importance to policyholders.  As if on cue, late last week the Ninth Circuit Court of Appeals confirmed in Ash Grove Cement Company v. Liberty Mutual Insurance Company that, under Oregon law, an insurer’s duty to defend begins…

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New York High Court Gives the Bronx Cheer to Insurers’ Pro Rata Allocation and Exhaustion Arguments

Over time, New York’s courts have erected multiple barriers to policyholders seeking to recover insurance for long-tail, progressive injury claims—such as environmental or asbestos liabilities—that can implicate multiple policies over multiple policy terms. Now, in a New York minute, just weeks after hearing oral argument, the Empire State’s highest court…

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Are You a “You”? Don’t Ignore CGL Policies’ Separation of Insureds Clause

What a difference a word makes! Today’s words are “the,” “an,” “any,” and especially “you.” Most Commercial General Liability policies include a coverage enhancement known as a “separation of insureds” or “severability of interests” clause. This clause states that the policy’s coverage is to apply “separately” to each insured against…

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Obtaining Insurance Coverage for Climate Change Investigations

New York’s Martin Act has a lot of Wall Street and energy industry companies concerned about potential investigations into their respective stances on climate change. In the client alert “When Attorneys General Attack,” colleagues Sheila Harvey, Joseph Jean, Carolina Fornos and Benjamin Tievsky examine the act and discuss strategies for…

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Insurer Stuck with Unfavorable Interpretation of Ambiguous Policy

In Fabozzi v. Lexington Insurance Company, the United States Court of Appeals for the Second Circuit has reaffirmed that ambiguities in an insurance policy must be construed against the insurer. The Fabozzis were renovating their home when they learned that its interior walls were so rotted that the entire house…

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“Escape” Clause Offers Insurer No Escape from Duty to Defend

Houdini managed an escape from a straight jacket while suspended 40 feet in the air. But that trick turned out to be easier than a primary insurer’s recent attempt to escape its duty to defend in California. In Underwriters of Interest Subscribing to Policy No. A15274001 v. ProBuilders Specialty Ins.…

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When is a Policy Renewal Not a Renewal?

Acquiring adequate insurance coverage against environmental risks, in particular the spill or release of pollutants or contaminants in day-to-day operations, is important to many construction businesses confronting the requirements of environmental regulation. For example, EPA’s hazardous waste rules require permittees (at both the state and federal level) to demonstrate financial…