Commentary on insurance and reinsurance disputes and related issues and the website of Schiffer Law & Consulting PLLC
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”
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”
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”
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”It was bound to happen sooner or later. Finally, an appellate court has weighed in on a COVID-19 property damage coverage dispute. This first appellate decision goes into the insurer win column. So what does it mean for future cases?
Continue reading “What Does the First COVID-19 Appellate Decision Mean?”
Among the discovery sought in many insurance coverage disputes is reinsurance information. This may include the reinsurance contracts that reinsure the underlying policies and communications between the cedent and reinsurer concerning the reinsurance contract or the underlying losses. Courts have been all over the place on this issue, with some only allowing production of the relevant reinsurance contracts and others allowing broad discovery into all facets of reinsurance material.
In a recent case, the court granted reinsurance discovery and found that the insurers failed to meet their burden to avoid production.
Continue reading “The Relevance of Reinsurance Information in a Coverage Dispute”
When bringing a lawsuit there is often strategy to the venue chosen. This is especially true in insurance coverage cases where the outcome can vary by jurisdiction. Another consideration is whether the disputed contract, like an insurance contract, has a forum selection clause, which dictates the venue for the dispute. In a recent case, a court addressed both these issues in deciding a motion to dismiss. The case is a COVID-19 business interruption coverage dispute.
Continue reading “Forum Shopping and COVID-19 Coverage Cases”
There is no question that the COVID-19 restrictions imposed by local and state governments have had an unintentional but devastating effect on businesses both large, medium and especially small. Restaurants, movie theaters, live entertainment, sports. gyms, salons and many other businesses have closed because of the lack of business. While many of these businesses purchased insurance with coverages for business income and extra expense, the lack of direct physical loss of or damage to property has meant that these policies, for the most part, do not cover the loss of business caused by the government shut-down orders.
Continue reading “Brokers and Insurers Prevail in COVID-19 Coverage Action”
COVID-19 business interruption rulings periodically have interesting quirks worth discussing. While the majority of cases are being dismissed at the pleading stage, some are not for various reasons. In a recent Ohio state court case, the motion to dismiss on the pleadings was denied in major part because of an endorsement expanding coverage in a business property policy for a restaurant.
Continue reading “Broad Policy Endorsement Dooms Motion to Dismiss in COVID-19 Case”
It’s been since September that I have blogged about business income and extra expense and civil authority order insurance coverage for COVID-19 closures and the multiple court cases addressing motions to dismiss. That’s because the cases have been coming down by the dozen, mostly, but not always, on the side of the insurance carrier.
In one of the recent cases, another motion to dismiss the complaint granted with prejudice in favor of the insurer, the court’s analysis was extremely thorough and persuasive. But what struck me most was the court’s commentary on the differences chosen by policyholder counsel in articulating the allegations in the complaint. Those differences are obvious and, although I have not done a statistical analysis, it appears those differences often account for the reasons why some courts have not dismissed these COVID-19 cases. What do you think?
Continue reading “While the COVID-19 Dismissals Pile Up, the Allegations May Matter”
