exclusion News

D&O Insurer Dodges Coverage for $4.9M Embezzlement Scheme

A directors and officers insurer has no duty to defend a New Mexico financial organization from litigation filed after its former chief executive officer was convicted of stealing $4.9 million from clients, a federal appellate court ruled. A panel of …

Attorneys: Ransomware a Multi-Layered Risk for Policyholders

The evolution of ransomware is bringing a wider range of risks to insurance policyholders, with new government regulations, exfiltration of data and state-sponsored actors adding to the mix, attorneys with the Anderson Kill law firm said during a webinar on …

Auto Dealer’s Insurer Not Liable for Auctioneer Employee’s Crash that Killed 5

A tragic accident at a Massachusetts auto auction company is not covered by the insurance of the auto dealer that hired the auction company to sell the vehicle involved in the accident. A federal appeals court has declined to perform …

N.J. Supreme Ct: New York Exclusion Relieves Insurer of Duty to Defend

Clearly, Admiral Insurance Co. did not want to assume any risk in the New York City area. The insurance policy Admiral issued to Richfield Window Coverings excluded coverage “in any way connected with” operations or activities in the nine counties …

Viewpoint: Videotaping of Child in Shower is ‘Sexual Misconduct’ Excluded by Policy

Plaintiffs, R.S. and D.S. filed a lawsuit against a homeowner, Shawn Conrad, in Yellowstone County, Montana. The case involved a minor who took a shower at Conrad’s home. The female minor discovered hidden cameras that had been placed in the …

Sex Abuse Victim Can’t Challenge Ruling that Insurer Had No Duty to Defend

A victim of childhood sexual abuse cannot challenge a trial court’s decision that an insurer had no duty to defend her abuser from a lawsuit, a panel of the 11th Circuit Court of Appeals ruled. The appellate panel on Tuesday …

Ohio High Court Rules Coverage Owed for Contamination That Ruined Product

Contamination that ruined more than $1 million worth of glass containers manufactured by a policyholder’s customer counts as damage that is covered by an umbrella insurance policy, the Ohio Supreme Court ruled Wednesday. The Supreme Court justices unanimously agreed that …

Liberty Must Defend Against Lawsuits by Nassar Accusers; Coverage May Be Capped

Larry Nassar is accused of sexually assaulting hundreds of girls and young women while working with USA Gymnastics, resulting in his criminal conviction and hundreds of lawsuits that forced the organization into bankruptcy. Liberty Mutual Underwriters must defend USAG against …

Despite Assault Exclusion, Razor Attack Covered by Policy Because of Mental Illness

There was no argument that Colin Doherty, a resident at the Brown County Care Center, slashed Austin Krewina’s face with a razor blade. But a criminal court found Doherty not guilty of assault and battery because he was insane at …

No Coverage Owed for $1.2 Million Loss Caused by Gold Coin Shipping Scam

A Dallas gold coins dealer cannot evade a fraudulent check exclusion in its insurance policy by putting the onus on UPS for rerouting shipments worth more than $1 million. The Texas Supreme Court ruled that UPS’ alleged mishandling of its …