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Risk and Recovery: Legal Insights for the Insured

Tag Archives: fraud

Policyholder Warning: What One Provision Giveth (Defense Costs), Another Provision May Taketh Away

Posted in Commercial General Liability (CGL), Professional Liability

Professional liability insurance policyholders often breathe a sigh of relief when their insurer begins funding the costs of defending against a civil claim or government investigation. That is one of the reasons they bought the insurance in the first place! However, as one policyholder recently learned, just because the insurer advances defense costs doesn’t mean… Continue Reading

Bank Bond Covers Third-Party Losses Arising out of Bank Employee’s Fraud, Eighth Circuit Holds

Posted in Commercial General Liability (CGL)

Fidelity bonds are purchased primarily to protect against loss to the policyholder’s own assets, from things like employee theft or embezzlement. In Avon State Bank v. BancInsure, Inc., however, the Eighth Circuit interpreted the language of a bank’s fidelity bond to provide broader coverage, holding that the bond indemnified Avon State Bank for liability to… Continue Reading