Last week, the first lawsuit was filed seeking insurance coverage for business-interruption due to losses caused by COVID-19. The case, Cajun Conti, LLC, et al. v. Certain Underwriters at Lloyd's of London, ,et al., was filed in Louisiana. A New Orleans restaurant, Oceana Grill," seeks a declaratory judgment that its "all risks" policy
Umbrella Carrier Must Drop Down to Fill Gap in Coverage
The umbrella insurer was required to drop down when the primary carrier's policy only covered the additional insured when it was vicariously liable for the named insured's operations. Am. States Ins. Co. v. Ins. Co. of the State of Pa., 2020 U.S. App. LEXIS 585 (9th Cir. Jan. 7, 2020).
New York Instructs Property Carriers to Advise Insureds on Business Interruption Coverage
The New York Department of Financial Services (DFS) took the unusual step last week of instructing all property/casualty insurers to provide information on commercial property insurance and details on business interruption coverage in light of the COVID-19 outbreak. The notice is here.
The notice recognizes that policyholders have urgent questions
Claims of Contamination by Lead Paint Must be Defended
In an unpublished decision, the Illinois Appellate Court determined that claims against the insured painting contractor had to be defended by the CGL carrier. Owners Ins. Co. v. Precision Painting & Decorating Corp., 2019 Ill. App. Unpub. LEXIS 2425 (Ill. App. Ct. Dec. 31, 2019).
The homeowners hired Precision to
Insurance Coverage and Coronavirus
Individuals and businesses are asking what insurance coverage is available for harm caused by COVID-19 and the coronavirus. Here is a short survey addressing possible coverage under various policies.
Property Insurance – Typically, damage to tangible property insured by "covered causes of loss" is covered by a commercial property or homeowner's
Coverage Established for Ransomware Attack
The court found direct physical loss was established, allowing coverage for a ransomware attack on the insured's computer server and networked computers. Nat'l Ink & Stitch, LLC v. State Auto Prop. & Cas. Ins. Co., 2020 U.S. Dist. LEXIS 11411 (D. Md. Jan. 23, 2020).
The insured stored art, logos
“Your Work” Exclusion Bars Coverage
Although the appellate court agreed there was property damage caused by an occurrence, the "your work" exclusion barred the insured contractor's claim. King's Cove Marina, LLC v. Lambert Commercial Construction. LLC, 2019 Minn. App. LEXIS 389 (Minn. Ct. App. Dec. 16, 2019).
King's Cover Marina sought to expand and remodel
Procedural Bad Faith Presentation
Our panel addressed Procedural Bad Faith this morning at the ABA’s Insurance Coverage Litigation Committee’s annual seminar this morning in Tucson, AZ.
Insurer’s Summary Judgment Motion for Rescission or Reformation of Umbrella Policy Fails
The insurer was unsuccessful in seeking rescission or reformation of an umbrella policy. Great Am. Ins. Co. v. Zelik, 2020 U.S. District. LEXIS 5229 (S.D. N. Y. Jan. 6, 2020).
Kim Hodges tripped and fell in front of vacant lot owned by Joseph Zelik, a real estate investor. Zelik tendered
Property Damage Not Covered, Personal Property Damage is Covered
The Illinois Appellate Court held that there was no coverage for faulty workmanship causing damage to property, but there was coverage for damage to personal property. Certain Underwriters at Lloyd's London v. Metropolitan Builders, Inc., Ill. App. LEXIS 979 (Ill. Ct. App. Dec. 18, 2019).
Metropolitan was the general contractor