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…
Policyholder Pulse
Don’t Allow Terrorism Exclusions To Attack Your Coverage
The recent bombings at the Brussels Airport and Maalbeek metro station are another sobering reminder of how much vigilance is needed to protect against these kinds of public health and safety from attacks. They show once again that violence—whether resulting from terrorism or otherwise—can occur any time at any place,…
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…
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…
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…
It Was Only a Slip! London Insurers’ Communication with Counsel via Brokers Constituted Waiver of Privilege
They do some things differently in London. But just because they have different customs across the pond doesn’t mean they get to play by different rules—at least not in American courts. That was the message a federal magistrate judge in the Eastern District of New York delivered when she ruled…
A Double Standard in Construction Defect Coverage Cases?
The recent decision of Allied Property & Casualty Insurance Co. v. Metro North Condominium Associates highlights why only a minority of jurisdictions still hold to the fiction that construction defects cannot give rise to an “occurrence” covered under a CGL policy. It also shows why construction companies and other companies…
Yes, Virginia, There Is Coverage for Cyber Loss under Commercial General Liability Policies
Just as the famous 1897 New York Sun editorial playfully reassured the skeptical eight-year-old Virginia, so too a recent Fourth Circuit decision should reassure policyholders in Virginia (and nationwide). Despite insurers’ skepticism, general liability insurance may in fact cover cyber events. On April 11, the U.S. Court of Appeals for…
The “Panama Papers” and the Secret World of Shell Corporations
In the client alert The “Panama Papers” and the Secret World of Shell Corporations, Insurance attorneys Joseph Jean and Alexander Hardiman along with their colleagues Carolina Fornos, Mark Hellerer, Maria Galeno, William Sullivan, Nancy Fischer, Nora Burke and Danielle Vrabie discuss a leak of 11.5 million documents from a law…
To Defend Or Not To Defend? There Shouldn’t Be Any Question
Sometimes a phrase is repeated so often that we forget what it meant in the first place. Perhaps that is the case with the phrase “the duty to defend is broader than the duty indemnify.” This statement has been made by courts frequently and repeatedly over at least the past…