SDV Insights

In J.P. Morgan Securities Inc. v. Vigilant Ins. Co., the New York Court of Appeals recently issued a policyholder-friendly ruling finding a $140 million disgorgement payment to the SEC was not a "penalty imposed by law" and was therefore not excluded from qualifying as a covered "loss" under a professional policy issued to securities brokers and dealers.

A recent Delaware Supreme Court decision addressed two important issues for directors and officers ("D&O") policyholders incorporated in Delaware: 1) As a matter of public policy, whether insurance is available to cover fraudulent conduct by a corporation's directors or officers; and 2) When a D&O corporate liability policy lacks an effective choice of law provision, which state's law should be applied?

Applying Louisiana law, a recent federal court decision exemplifies why policyholders should thoroughly read claims-made policies to understand when notice is due to insurers and truthfully complete policy applications.

SDV's Natural Disaster Recovery Group presents the Hurricane Handbook: A Policyholder's Guide to Handling Claims during Hurricane Season. This handbook intends to be a practical guide on policyholder issues, both homeowners and business owners alike, when preparing for hurricane season and handling claims after a loss due to a hurricane.

If you suffered damage as a result of a hurricane, you should submit a claim under any insurance policy you have that might apply. This includes flood insurance, homeowner's insurance, renter's insurance, condo insurance, and auto insurance. Some of these policies may have limitations, or even not apply, to losses associated with hurricanes, but the best practice is to submit the claim to ensure no opportunities for coverage missed.

First-party, third-party, builder's risk, professional liability, general liability, wrap-ups, and additional insured status are all potential sources of insurance coverage for a large construction loss.

New York has enacted an unpaid wage law that imposes liability upon upstream contractors. Senate Bill S2766C is intended to provide recourse to construction workers whose employers fail to pay wages owed for completed work.

Recently, in Mt. Hawley Ins. Co. v. East Perimeter Pointe Apts., the Eleventh Circuit Court of Appeals upheld the denial of liability coverage for negligent security claims involving an assault and murder at an apartment complex in Georgia, finding that the insured owner of the complex and its property management firm waited too long to notify their insurers of the incidents.

The 10th Circuit Court of Appeals, applying Colorado law, recently extended Colorado's broad application of the phrase "arising out of" in an insurance interpretation, barring an insured real estate developer from receiving a defense to a suit alleging liability for construction of a defective retaining wall and associated resulting damage.

In Horn v. Liberty Ins. Underwriters, Inc., the Eleventh Circuit Court of Appeals addressed insurance coverage for claims arising out of the invasion of privacy relating to a TCPA claim. In the underlying litigation, individuals brought a class action lawsuit against iCan Benefit Group LLC (iCan), alleging that iCan violated the TCPA and invaded the plaintiffs' privacy by sending unsolicited text messages without the consent of the recipients.