When adding new or additional layers to an insurance program, policyholders are often asked to sign a “warranty letter” providing comfort to the prospective insurer that the policyholder is not aware of impending claims. Typical warranty letters include both subjective and objective representations, indicating that the policyholder has both no…
The Supreme Court of Texas delivered good news to policyholders insured under a “Joint Venture Provision” endorsement commonly used in the oil and gas industry. In Anadarko Petroleum Corp. v. Houston Casualty Co.—a case arising from the 2010 Deepwater Horizon disaster—the court held that insurers assumed the obligation to reimburse…
It’s time-proven advice: Never underestimate the power of an apology. This is true even in a legal context, and especially during a corporate crisis—an event with the potential to materially harm a company’s reputation or bottom line due to alleged negligence, malfeasance or other liability-driven factors. But even when an…
Have $57 million (or more) to spare? You’re going to need it if you run afoul of the EU’s General Data Protection Regulation (GDPR) without cyber insurance. In late January 2019, the French data protection authority, CNIL, imposed a fine of €50 million—or roughly $57 million—on Google for violations of…
Does the coverage in commercial general liability (CGL) policies for violations of the right to privacy extend to unwanted intrusions, or is it limited to the disclosure of personal information to a third party? On a recent request for clarification from the U.S. Court of Appeals for the Ninth Circuit…
A corporate crisis is an event that has the potential to cause material harm to a company’s reputation or bottom line. Typically, these crises have a potential liability element, whether because of negligence, oversight, inaction, malfeasance, or mishandling by the company or others associated with the company. Though prevention strategies…
Latin America continues to be a prime market for business development and expansion; however, insurance coverage for businesses based in or doing business in the region sometimes lags behind what is necessary to sufficiently protect them against risk. Evaluating coverage for companies operating in Latin America requires a specialized skill…
Even when you’ve done your utmost to secure your organization’s cybersecurity—you’ve followed the advice of all the experts, you’ve checked all the boxes—you still may have an Achilles’ heel. Your cybersecurity is only as strong as its weakest point, which is often a vendor or supplier. In this context, a…
A recent decision in the Middle District of Florida, Southern Owners Insurance Company v. Gallo Building Services, Inc., reminds us of the high bar an insurer must clear to avoid its duty to defend an insured—even when that insured is out of business. Gallo Building Services was a subcontractor hired…
New Jersey’s greatest contribution to American rock ’n’ roll, Bruce Springsteen, was nearly relegated to obscurity by a marijuana bust involving his bandmates. Rock legend has it that one of The Boss’ early bands, the Castilles, was forced to break up when some of its members were caught with cannabis…