exclusion News

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 …

Insurer Must Defend Against Lawsuit Over Drug Overdose, Despite Exclusion

An insurer must defend its policyholders against a lawsuit that alleges their drug-dealer son caused the overdose death of a house guest while they were away, a Pennsylvania appellate court ruled. A three-judge panel with the Pennsylvania Superior Court ruled …

Okla. Supreme Ct. Ruling Shows Policyholders Shouldn’t Depend on Agent’s Representations

New Dominion LLC taps into oil and natural gas reserves that many production companies avoid. The Tulsa, Oklahoma company operates hundreds of wells that produce from hydrocarbon reservoirs that are saturated with water from ancient aquifers. When oil or gas …

Nevada Supreme Court Rules Insured Must Prove Coverage Owed in Construction Defect Litigation

At least 14 construction defect lawsuits have been filed against developers and subcontractors that built thousands of Nevada homes. Two insurers issued commercial liability policies to cover such claims, but they didn’t agree on whether a prior-damage clause in one …

Viewpoint: Due Process, Bill Cosby, and D&O Liability Insurance Conduct Exclusions

Directors and officers liability insurance policies often contain exclusions for losses related to criminal or deliberately fraudulent activities. Such exclusions usually are limited to circumstances in which the fraud or crime is finally adjudicated. The path from initial allegations to …

‘Physical Abuse’ Exclusion Doesn’t Bar Claim Stemming From Fight Over Fish

A policy that excludes damages caused by “physical abuse” does not take a property insurer off the hook for a claim by an insured who agreed to pay $500,000 to settle a lawsuit stemming from injuries caused by an alleged …

Plaintiffs Hope to Consolidate COVID-19 Business-Interruption Lawsuits

Two groups of plaintiffs — one in Philadelphia, the other in Chicago — are asking federal courts to consolidate lawsuits filed by businesses that are seeking coverage for business-interruption losses caused by coronavirus stay-home orders. Attorneys for owners of the …