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 that Certain Underwriters at Lloyd’s had waived attorney-client privilege by communicating with their counsel through a London broker.
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 with similar risks need to understand how this rule is applied, and may want to avoid choosing Illinois law to control their CGL policies.
Just as the famous 1897 New York Sun editorial playfully reassured the skeptical eight-year-old Virginia, so too a recent F
ourth Circuit decision should reassure policyholders in Virginia (and nationwide). Despite insurers’ skepticism, general liability insurance may in fact cover cyber events.
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 firm in Panama that may implicate politicians, criminals and celebrities in sheltering of fortunes in offshore tax havens through the use of shell companies. In light of these events, financial institutions and other entities may need to consider whether they are implicated, how to assess the risks, how to minimize exposure, if any, and whether insurance coverage is available.
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 50 years in virtually every case in which an insurer has sought to avoid defending its policyholder against a lawsuit or other third-party liability. Yet insurers continue to confuse the scope of their duty to defend with the scope of their duty to indemnify. The basic distinction is this—an insurer owes a duty to defend when its policyholder faces allegations that could potentially result in liability covered by the policy; an insurer owes a duty to indemnify when a policyholder’s actual liability falls within the coverage provided by the policy.
Spring is upon us, which means the return of baseball. It seems only fitting that with a new season of America’s pastime just underway, we discuss another area where the performance in the lead-off position can be vital: leading off the claims process by providing notice to your insurer.
Say your company’s just been sued, received a demand letter, suffered massive property damage, or incurred some other type of substantial loss. If your routine practice in these high-stress situations is to consider potentially applicable insurance, you’re ahead of the curve and should pat yourself on the back. Because too often, even if understandably, insurance is an afterthought to companies in the midst of a crisis. Unfortunately, in such situations, when a company does get around to making an insurance claim, the insurer commonly denies coverage on the basis of late notice.
This post is a continuation of my top ten recommendations for negotiating your cyber insurance policy. The first five tips are in Part 1.
North Texas never felt an earthquake until 2008. Since then, well over one hundred have been recorded—including a whopping five earthquakes confirmed in a single day in April 2015. Oklahoma had 585 earthquakes of magnitude 3 or greater in 2014, which rose to 907 in 2015. Areas spread across the central and eastern United States, from Colorado to Ohio, are experiencing increased seismic activity and the increased risk of earthquake-related property damage that comes along with it.
As more and more companies ranging across a wide spectrum of industries have been exposed to network and data security breaches, the market for insurance products to cover cyber risks has grown just as fast. With policies sold under names like “cyberinsurance,” “privacy breach insurance,” “media liability insurance” and “network security insurance,” the market is chaotic. Premiums and terms vary dramatically from one insurer to the next. And because cyber policies are far from uniform, it’s crucial to understand not only what you’re being offered, but also how to negotiate coverage for the risks inherent in your business. This post contains five of my top ten recommendations. (The remaining five tips are in Part 2.) Continue Reading ›
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. Continue Reading ›
