SDV Insights

In North River Ins. Co. v. Leifer, the United States Court of Appeals for the Second Circuit determined that a "prior knowledge" exclusion in a professional liability insurance policy excused the insurer from its duty to defend against malpractice claims brought against its insured. In so holding, the Second Circuit concluded that the insured failed to disclose facts and circumstances to its insurer that it knew or should have known could result in a future malpractice claim.

In National Union Fire Insurance Company of Pittsburg v. Cargill, Inc., the Eight Circuit Court of Appeals, applying Minnesota law, recently addressed whether damages associated with an employee's embezzlement scheme would be covered under a policy for employee theft.

In the matter of Remprex, LLC v. Certain Underwriters at Lloyd's London, policyholder Remprex was thrust into two separate class actions, both involving alleged violations of the Biometric Information Privacy Act ("BIPA").

In the construction sector, the importance of closely vetting downstream parties' insurance has never been more critical. The markets have been hardening with no seeming end in sight and carriers are looking for any way to get an edge.

It is rare for the U.S. Supreme Court to grant certiorari in cases involving issues of insurance. However, the Court's decision to grant certiorari in Great Lakes Insurance SE v. Raiders Retreat Realty Co., LLC, 143 S. Ct. 999 (2023), may substantially alter the use of choice-of-law provisions in maritime insurance policies, and possibly, insurance policies in general.

Following significant backlash in reaction to the Nevada legislature's new law prohibiting enforcement of any provisions in liability insurance policies dictating that defense costs are included within the limits of insurance, the Nevada Division of Insurance issued an emergency regulation further clarifying the law.

The Southern District of New York recently ordered a directors and officers ("D&O") liability insurer to pay up to $4.5 million to reimburse an insured investment firm for the costs the firm incurred defending an arbitration proceeding brought by a former executive.

Nevada's legislature recently passed a groundbreaking law imposing two prohibitions on insurers. First, the law prohibits insurers from issuing or renewing any liability insurance policy with an "eroding limits" provision.

In Gemini Insurance Company v. Indemnity Insurance Company of North America, the U.S. District Court for the Southern District of Texas found an employer's liability policy only provides coverage for bodily injury claims brought against the Named Insured by its own employees and NOT employees of its subcontractors.

SDV's Will Bennett joined the latest episode of Insuring Cyber Podcast. Will and host Elizabeth Blosfield, Deputy Editor at Carrier Management, took a dive deep into the captivating world of generative AI chatbots in the insurance industry and explored the benefits and risks associated with their use and the use of AI in the insurance industry in general.