Blog: Insurance Claims

Recently, federal courts in California and Florida dismissed claims brought by restauranteurs against their insurance companies after the insurers denied business-interruption coverage for losses related to COVID-19 quarantine orders. In both cases, the courts held that the policyholders had not sufficiently alleged that their properties had suffered “direct physical loss or damage,” as required by […]

Those of us who suffered through law school are familiar with the argument that there are fundamental rules applicable to contract interpretation and that a certain contract language interpretation would “swallow the rule.” However, insurance companies have long advocated for an interpretation of the CGL policy’s pollution exclusion that would “swallow the coverage” that the […]

The Fifth Circuit Court of Appeals recently held that an insurer was not obligated to pay damages associated with a hydrochloric acid spill based on a pollution exclusion in the policy. In Burroughs Diesel, Inc. v. Travelers Indemnity Co. of America,1 a trucking company sued its property insurer, Travelers Indemnity Company of America (“Travelers”) when it refused […]

Late last week, a Missouri federal district court provided a significant victory for insurance policyholders for COVID-19 losses. In Studio 417, Inc. v. The Cincinnati Insurance Company 6:20-cv-03127-SRB (W.D. MO, So. Div., Aug. 12, 2020), the Court was called upon to decide whether allegations involving the presence of COVID-19 in and around physical structures qualify as “direct […]

An Indiana businessman found out the hard way how far his insurance company was willing to go to avoid paying a claim after it misrepresented the coverage of a crime policy it sold to him. The quote for the policy indicated that it included coverage for losses resulting from computer hacking. Despite this representation, when […]

In American States Insurance Company v. Insurance Company of the State of Pennsylvania, No. 18-15770, 2020 WL 70491, the Ninth Circuit issued a decision about the role umbrella insurance policies have when there is a gap in insurance coverage, thereby opening the possibility for equitable contribution claims. In 2007, Sierra Pacific Industries hired subcontractor Howell Forest […]

The cancellation of events producing income, galas and other fundraising events, the furloughing and quarantining of employees and volunteers, and the prospect of possible third-party liability claims have all caused considerable financial strains for many nonprofit entities, in recent weeks, thanks to the COVID-19 crisis. Insurance coverage can help nonprofits weather the storm but getting […]

Published in the Spring 2020 issue of NASBP Surety Bond Quarterly Richard W. Brown, Michael V. Pepe and Janie Reilly Eddy were recently featured in the National Association of Surety Bond Producers magazine, with their article New Additional Insured Endorsement Forms Will Impact Contractors, Project Owners, Lessees. Click below to read more as this article addresses new ISO issued Additional Insured […]

This article was published by the International Franchise Association (IFA) on April, 29, 2020. Click here to visit their website. Most franchise systems are facing severe financial impacts as a result of the continued spread of COVID-19 and the numerous government-mandated shutdowns that have been ordered by state and local officials in response. Even if your franchised […]

Several businesses have commenced litigation in Florida against first-party commercial property insurers seeking coverage for business interruption losses resulting from state and local government orders enacted to mitigate the spread of COVID-19. Most recently, on April 1, 2020, Governor Ron DeSantis issued Executive Order 20-91 requiring all nonessential businesses to close for a period of […]

Louisiana, Pennsylvania and South Carolina are considering legislation that would mandate coverage under property policies for business interruption losses resulting from the COVID-19 pandemic. These states join the growing group of states that are considering enacting such legislation, which now includes New Jersey, Massachusetts, Ohio and New York. Louisiana House Bill No. 858 (the “LA […]

When submitting an insurance claim for losses due to COVID-19, the policyholder’s rightful expectation is that their insurer will handle their claim fairly and in good faith. However, a growing collection of lawsuits1 allege that certain insurers are not living up to this expectation and are denying coronavirus-related claims in bad faith. One such lawsuit, Barbara Lane […]