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Risk and Recovery: Legal Insights for the Insured

Tag Archives: duty to defend

Texas Says EPA Administrative Actions under CERCLA Trigger Duty to Defend

Posted in Commercial General Liability (CGL)

As any company facing EPA administrative action under CERCLA knows, the financial risk and defense costs associated with those proceedings can be the same as the risk and costs of an EPA lawsuit under CERCLA. But insurers have argued that administrative actions are very different from suits under standard CGL policies. Those policies, insurers argue,… Continue Reading

California Federal Courts Tell Insurers Not to Jump the Gun in Suing Policyholders for Reimbursement

Posted in Commercial General Liability (CGL)

In a series of opinions issued over the past few months, federal judges in California have reiterated that insurers must wait until they are finished defending their policyholders before they sue those policyholders for reimbursement of defense costs.  While California remains one of the handful of states in which an insurer can try to claw… Continue Reading

New York State Court Rules That Darwin Has Duty to Defend but AIG Does Not, for Same Risk, Based on Differing Policy Language

Posted in Commercial General Liability (CGL)

New York state court Judge Shirley Werner Kornreich recently ruled that American International Group, Inc. (“AIG”) didn’t have to pay certain defense costs for various suits brought against QBE Holdings, Inc. and its affiliates (collectively, “QBE”), but that QBE’s other insurer Darwin Select Insurance Co. (“Darwin”) did, despite the apparent similarities in language of the… Continue Reading

California Supreme Court Clarifies an Insurer’s Duty to Defend in Disparagement Cases

Posted in Advertising Injury Liability, Commercial General Liability (CGL)

Advertising injury liability coverage offered under commercial general liability (“CGL”) policies is aimed at protecting companies against claims, often brought by competitors, alleging harm by purportedly derogatory statements in the policyholder’s advertisements.  The statements, however, need not be expressly disparaging.  Suits alleging that an ad implies the inferiority of a competitor’s product may trigger coverage. … Continue Reading

Sixth Circuit Finds Excess Carrier Had Duty to Indemnify Insured for Property Damage Arising From Alleged Misrepresentations and Duty to Defend When Primary Carrier Wrongfully Denied Coverage

Posted in Property Damage

In a decisively pro-policyholder decision issued by the United States Court of Appeals for the Sixth Circuit in IMG Worldwide, Inc. v. Westchester Fire Ins. Co., Nos. 13-3832, 13-3837 (6th Cir. July 15, 2014), the court righted a wrong in not only affirming a jury’s finding that an excess carrier had breached its duty to… Continue Reading

Pennsylvania Superior Court Finds Coverage Under CGL Policy For Product Defect Claims

Posted in Commercial General Liability (CGL), Product Liability

Policyholders seeking defense costs for products liability claims received welcome support from a Pennsylvania appellate court which rejected an excessively restrictive view of the scope of coverage offered under commercial general liability (CGL) policies.  The court in Indalex, Inc. v. National Union Fire Insurance Co. of Pittsburgh, Pa., reversed, or at least slowed, what appeared… Continue Reading

First Circuit Orders AIG To Advance Defense Costs In FDIC Suit Because Of “Likelihood Of A Remote Possibility Of Coverage”

Posted in Directors and Officers Liability

On March 31, 2014, the First Circuit reaffirmed the breadth of an insurer’s duty to defend. In W Holding Co., Inc. v. AIG Ins. Co.-Puerto Rico, No. 12–2008, 2014 WL 1280246 (1st Cir. Mar. 31, 2014), the appellate court ruled that AIG Insurance Company (“AIG”) must advance defense costs to former directors and officers of… Continue Reading