SDV Insights

A recent decision by the United States District Court for the District of Connecticut further confirms that Connecticut courts follow the majority rule that contractual anti-assignment clauses do not bar assignment of an insured's claim after the loss occurred.

Although collateral agreements provide security for insurers on policies with large deductibles, they can create hardships for insureds that are out of proportion with the insurers' security concerns.

Since the advent of the modern Insurance Services Office, Inc. (ISO), standard additional insured (AI) endorsement in the early 2000s, many insurance companies have advocated for an exceedingly narrow application, arguing that coverage is available only for the AI's vicarious liability for the named insured's acts or omissions.

The California federal district court case of KB Home v. Illinois Union Insurance Co., No. 8:20-cv-00278-JLS-JDE, (C.D. Cal. August 23, 2022), provides much needed guidance for cases involving builder's risk insurance claims for soft cost coverage.

The Supreme Court of Ohio recently ruled that a ransomware attack on a medical billing company failed to cause direct physical damage to the company's computer software as required under its business owners policy. Prior to this ruling, a ransomware attack on a business computer system and resultant claim under an all-risk commercial property insurance policy had not been addressed in Ohio.