The Insurance Services Office (ISO) has issued a Circular advising it will submit to Insurance Departments in various states proposed changes to the Designated Premises Endorsement. The changes are due in part to the Hawaii Supreme Court's decision in C. Brewer & Co. v. Marine Indem. Ins., 135 Haw. 190, 347 P. 3d
2016
Pollution Exclusion Bars Coverage for Damage Caused by Tar Escaping From Roof
By Tred R. Eyerly on
The insurer prevailed on summary judgment establishing it had no duty to defend the insured roofing contractor for damage caused by tar escaping from a roof. Mesa Underwriters Spec. Ins. Co. v. Myers, 2016 U.S. Dist. LEXIS 108444 (W.D. Ohio Aug. 16, 2016).
Myers contracted to do roofing work for Sireco III LLC. Myers…
Insurer Granted Summary Judgment on Faulty Workmanship Claim
By Tred R. Eyerly on
The federal district court found no coverage for the insured developer after water intruded into the homeowners' basements. W. Bend Mut. Ins. Co. v. Cleland Homes, 2016 U.S. Dist. LEXIS 108030 (N.D. Ind. Aug. 16, 2016).
The underlying complaint alleged that the subdivision was designed to create a run off…
Following Hawaii’s Lead, Excess Carrier Allowed to Pursue Equitable Contribution from Primary
By Tred R. Eyerly on
Citing the Hawaii Supreme Court's decision in St. Paul Fire & Marine Ins. Co. v. Liberty Mut. Ins. Co., 135 Haw. 449, 353 P.3d 991 (2015), the California Court of Appeal determined that the excess carrier could pursue an equitable subrogation action alleging that the primary insurers' unreasonable failure to settle within policy limits…
No Coverage for Faulty Workmanship Causing Property Damage to Insured’s Product Only
By Tred R. Eyerly on
The Nebraska court found there was no coverage for rebar that did not meet specifications and did not cause property damage to other portions of the construction project. Drake-Williams Steel, Inc. v. Cont'l Cas. Co., 2016 Neb. LEXIS 116 (Neb. Aug. 5, 2016).
The general contractor was hired by the city to build…
Attorneys’ Fees Awarded as Part of “Damages Because of Property Damage”
By Tred R. Eyerly on
The federal district court for the district of Hawaii found that an arbitrator's award of attorneys' fees was part of the "damages because of property damage" and covered under a CGL policy. Ass'n of Apt. Owners of the Moorings v. Dongbu Ins. Co., 2016 U.S. Dist. LEXIS 110283 (Aug. 18, 2016 D.
Insurer Must Defend Construction Defect Claims
By Tred R. Eyerly on
The federal district court found that under New York law, the insurer had a duty to defend construction defect claims where damage to property other than the insured's work product was possible. Am.Home Assur. Co. v. Allan Window Techs., 2016 U.S. Dist. LEXIS 101118 (S.D. N. Y. Aug 2, 2016).
…
Ninth Circuit Finds Intentional Acts Exclusion Ambiguous
By Tred R. Eyerly on
In a brief memorandum opinion, the Ninth Circuit found the policy's intentional acts exclusion was ambiguous. Berns v. Sentry Select Ins. Co., 2016 U.S. App. LEXIS 13684 (9th Cir. July 27, 2016).
The insured's employee misappropriated company files. The employee was scolded and terminated. She then sued the insured. The tender to…
Business Risk Exclusions Do Not Bar Duty to Defend
By Tred R. Eyerly on
In a sensitive opinion incorporating several redactions, apparently due to national security issues, the court found that the business risk exclusions raised by the insurer did not apply in determining whether there was a duty to defend. Innovative Mold Solutions v. All Am. Ins. Co., 2016 U.S. Dist. LEXIS 91671 (D. Mass. July 12, 2016).…
Bad Faith Damages Awarded for Claims Handling
By Tred R. Eyerly on
The insureds prevailed at trial in securing an award for bad faith due to the insurer's unreasonable handling of the claim. Taladay v. Metro. Group Prop. & Cas. Ins. Co., 2016 U.S. Dist. LEXIS 87659 (W.D. Wash. July 6, 2016).
Rosemarie Taladay had a homeowners policy with MetLife. After her death…