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Insurance Coverage Blog

Commentary on Insurance Coverage Litigation in New York
Posted: February 25, 2020

CGL Policy’s IP Exclusion Bars Defense Coverage Despite Absence of “Direct Claims for IP Relief” in Complaint

On February 7, 2020, the Second Circuit issued a decision in Lepore v. Hartford Fire Ins. Co., Case No. 19‐778‐cv, holding that a CGL policy exclusion for any suit alleging “an infringement or violation of any intellectual property right” was triggered even though the underlying complaint did not contain a direct IP-infringement claim. The Second Circuit affirmed the trial court’s...

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Posted in CGL Policies, Personal and Advertising Injury, Policy Exclusions
Posted: February 19, 2020

Courts Grants Preliminary Injunction Directing D&O Insurer to Advance Costs for Defense of Civil Fraud Action

Posted by Bradley J. Nash, Litigation Partner On February 3, 2020, Justice Sherwood of the New York County Commercial Division issued a decision in Alexander v. Starr Surplus Lines Ins. Co., 2020 NY Slip Op 30297(U), granting a preliminary injunction directing a D&O insurer to advance defense costs to a former corporate officer for an investor lawsuit alleging fraudulent inducement....

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Posted in D&O Policies, Indemnification and Advancement
Posted: February 11, 2020

Property Owner Entitled to Additional Insured Coverage Under Contractor’s CGL Policy Despite No Proof of Negligence by Contractor

Posted by Bradley J. Nash, Litigation Partner On December 26, 2019, the First Department issued a decision in Fireman’s Fund Ins. Co. v. State Nat’l Ins. Co., 2019 NY Slip Op 09399, holding that a property owner was entitled to coverage for a personal injury lawsuit as an additional insured under a contractor’s CGL Policy, even though the injuries were...

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Posted in Additional Insured Endorsement, CGL Policies, Construction
Posted: January 27, 2020

Contrary to Recent First Department Case Law, Federal Court Rules that Attorneys’ Fees Are Not Recoverable Consequential Damages on Claim for Insurers’ Breach of Covenant of Good Faith and Fair Dealing

Posted by Bradley J. Nash, Litigation Partner On December 30, 2019, Judge Briccetti of the SDNY issued a decision in Ruiz v. Liberty Mut. Fire Ins. Co., 19 CV 4399 (VB), denying an insurer’s motion to dismiss an insured’s claim for breach of the covenant of good faith and fair dealing, but ruling (contrary to recent First Department case law)...

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Posted in Bad Faith Claims Handling, Damages
Posted: January 15, 2020

Insurer Ordered to Provide Defense Coverage in Copyright Infringement Action; Whether Infringement Was Intentional Cannot Be Determined in Coverage Action

On December 17, 2019, the First Department issued a decision in McGraw-Hill Education, Inc. v. Illinois National Insurance Company, 2019 NY Slip Op 08960, ordering an insurer to provide defense coverage in a copyright infringement action, absent a “judicial determination” that the infringements were intentional.

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Posted in Policy Exclusions
Posted: December 30, 2019

Where Parties “Clearly Intended to Cover a Risk,” Inadvertently Naming Incorrect Entity As Additional Insured Does Not Negate Coverage

Posted by Bradley J. Nash, Litigation Partner On November 20, 2019, Judge Ramos of the SDNY issued a decision in United Specialty Ins. Co. v. Lux Maintenance & Ren. Corp., Case No. 18-cv-3083 (ER), holding that property owners were entitled to additional insured coverage under a subcontractor’s CGL policy even though the subcontractor agreement misidentified the corporate names of the...

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Posted in Additional Insured Endorsement, CGL Policies, Construction
Posted: December 13, 2019

Insured Properly Pleads Claim for Consequential Damages Resulting from Insurer’s Refusal to Advance Business Interruption Coverage

Posted by Bradley J. Nash, Litigation Partner On December 5, 2019, the First Department issued a decision in Certain Underwriters at Lloyd’s v. BioEnergy Development Group, LLC, 2019 NY Slip Op 08779, reversing a trial court’s dismissal of a claim based on the insurer’s bad faith delay in providing business interruption coverage, explaining: The breach of the implied duty part...

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Posted in Bad Faith Claims Handling, Business Interruption Coverage, Damages
Posted: November 26, 2019

Exclusion for “Intentional and Criminal Acts” Barred Defense Coverage for Parents Accused of “Negligent Supervision” of Minor Son Who Committed Sexual Assault

Posted by Bradley J. Nash, Litigation Partner On November 20, 2019, Judge Briccetti of the SDNY issued a decision in Metropolitan Prop. & Cas. Ins. Co. v. Comley, Case No. 18-cv-9259 (VB), holding that a liability insurer properly denied defense coverage, under an exclusion for “intentional and criminal acts”, for a lawsuit alleging “negligent supervision” of the insureds’ minor son,...

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Posted in Duty to Defend, "Occurrence"/"Accident", Policy Exclusions
Posted: November 18, 2019

Agreement Between Insurance Broker and Insurance Company Raises Issue of Fact as to Agency Relationship; Summary Judgment Denied As to Whether Notice to Broker Constituted Notice to Insurer

Posted by Bradley J. Nash, Litigation Partner On November 8, 2019, Judge Gardephe of the SDNY issued a decision in XL Specialty Ins. Co. v. Prestige Fragrances, Inc., Case No. 18-cv-733 (PGG), holding that issues of fact precluded summary judgment on this issue of whether an insurance broker was an agent of the insurance company such that notice to the...

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Posted in Insurance Brokers
Posted: November 7, 2019

CGL Carrier Has No Duty to Defend Consumer Fraud Claims Where Complaints Do Not Allege Bodily Injury or Property Damage

Posted by Bradley J. Nash, Litigation Partner On October 28, 2019, Justice Borrok of the New York County Commercial Division issued a decision in Travelers Prop. Cas. Co. of Am. v. ICCO Cheese Co., Inc., 2019 NY Slip Op 33224(U), holding that a CGL carrier had no duty to defend consumer fraud class actions against Walmart because the complaints did...

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Posted in CGL Policies, Duty to Defend