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Risk and Recovery: Legal Insights for the Insured

Tag Archives: policy language

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

Illinois Court Holds That Coverage for Malicious Prosecution Claim Is Triggered When the Prosecution Is Commenced, Not When It Is Terminated

Posted in Malicious Prosecution Claim

An Illinois appellate court recently held in St. Paul Fire and Marine Insurance Co. v. City of Zion that coverage under a law enforcement liability policy for a malicious prosecution claim is triggered when the wrongful prosecution is commenced, not when it is terminated in favor of the accused.  The court thereby joined the majority… Continue Reading

Excess Insurance Triggered Despite Policyholder’s Settlement with Primary Insurers for Less than Policy Limits

Posted in Catastrophic Loss, Excess Coverage

When faced with a catastrophic loss triggering multiple layers of coverage and recalcitrant insurers at the primary layer, a policyholder has strong incentives to settle with the first-layer carriers for less than the full limits of that layer, cover the “gap” out of its own pocket, and seek excess coverage from the insurers in the… Continue Reading