Category: Coverage

New York’s Highest Court Rules Direct Physical Loss or Damage Requires Material Alteration or Complete and Persistent Dispossession

Photo by Thiago Matos on Pexels.com

The New York Court of Appeals (New York’s highest court for those expecting it to be the supreme court) has finally weighed in on the COVID-19 question of what direct physical loss or damage means in a property policy providing business interruption coverage. Not surprisingly, New York joins the vast majority of state and federal courts and affirmed the order below dismissing the complaint.

Continue reading “New York’s Highest Court Rules Direct Physical Loss or Damage Requires Material Alteration or Complete and Persistent Dispossession” →

Court Appoints Umpire in Coverage Dispute

Photo by shattha pilabut on Pexels.com

Many arbitration clauses, especially those that reference arbitration rules, provide for a party to go to the court where there is an impasse in appointing the arbitrator or umpire. In a case decided earlier in 2023, an insurance coverage dispute subject to arbitration landed in court to resolve a dispute over selection of the umpire.

Continue reading “Court Appoints Umpire in Coverage Dispute” →

Ninth Circuit Court of Appeals Certifies COVID-19 Question to the California Supreme Court

Photo by Kaique Rocha on Pexels.com

While insurers have been successful in dismissing most COVID-19 property damage claims, especially in federal court, many of the coverage issues that arise in federal court actions are resolved based on state law. When a federal court finds that resolution of a dispute is governed by state law and that there is no controlling state law precedent, the court may certify the state law question to that state’s supreme court for resolution.

Continue reading “Ninth Circuit Court of Appeals Certifies COVID-19 Question to the California Supreme Court” →

Arbitration Clause Upheld In Coverage Dispute

Photo by Dylan Bueltel on Pexels.com

Coverage disputes between US policyholders and non-US insurers like Underwriters at Lloyd’s of London continue to raise jurisdictional and related issues in US courts. The issues become further exacerbated when there is an arbitration clause in the insurance contract and the non-US insurer seeks to stay the coverage litigation and compel arbitration under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the “New York Convention), to which the US and the UK and most EU countries are signatories.

In a recent case, a Louisiana federal court, hearing the case after removal from the state court, granted the insurers’ motion to stay litigation and compel arbitration.

Continue reading “Arbitration Clause Upheld In Coverage Dispute” →

The Meaning of Broadcasting and Its Application to a Media Exclusion

Photo by W W on Pexels.com
Click Here for Podcast

When is broadcasting broadcasting as opposed to transmission? And is there a difference? That was the question before the court on an appeal from a judgment that an insurer did not have to defend its insured in a copyright infringement suit. The question was pertinent because of a media exclusion in the policy.

Continue reading “The Meaning of Broadcasting and Its Application to a Media Exclusion” →

Insurance Coverage Only Goes So Far

Photo by Matthis Volquardsen on Pexels.com
Click Here for Podcast

It should be pretty obvious that you only get the insurance you ask and pay for. Yet, sometimes coverage is sought well beyond the scope of the policy. In a recent case, the court made short work of the issue, but nevertheless the case went all the way to an appeals court even though it was obvious there was no coverage.

Continue reading “Insurance Coverage Only Goes So Far” →

Insured vs Insured Exclusion Precludes Coverage

Photo by Sabel Blanco on Pexels.com
Click Here for Podcast

In many insurance policies, particularly directors and officers liability policies, coverage is precluded if one insured brings a claim against another insured. But what happens if one of the named plaintiffs is not an insured party? A recent Sixth Circuit Court of Appeals case addresses this issue.

Continue reading “Insured vs Insured Exclusion Precludes Coverage” →

Weapons Exclusion Precludes Coverage

Photo by NIKOLAY OSMACHKO on Pexels.com
Click Here for Podcast

Courts are tough on exclusions but when an exclusion is clear it will preclude coverage. In a recent case, an exclusion for bodily injury arising out of weapons resulted in a coverage case being dismissed

Continue reading “Weapons Exclusion Precludes Coverage” →

No Privilege for Information Provided to Reinsurer

Click Here for Podcast

In coverage disputes, policyholders often seek communications between the insurance company and reinsurers to gain insights into the company’s views on the policyholder’s claims. Insurance companies generally resist production of reinsurance communications on various theories. In a recent case, the insurer invoked the “insurer-insured privilege.”

Continue reading “No Privilege for Information Provided to Reinsurer” →

Motion in Limine Granted Precluding Evidence of Reinsurance in Insurance Coverage Trial

Photo by cottonbro on Pexels.com

Insurance coverage litigation often involves document production requests for reinsurance information and communications. Courts are mixed on granting motions to compel production of reinsurance information. But what happens to reinsurance-related evidence when it comes to trial? One court recently answered that question.

Continue reading “Motion in Limine Granted Precluding Evidence of Reinsurance in Insurance Coverage Trial” →