policy language News

Insurers Rewrite Business Policies After Pandemic Legal Tussles

NEW YORK — U.S. insurers are strengthening language in policies that cover business losses to protect them from future claims related to the coronavirus pandemic or other widespread illnesses that disrupt operations, industry sources say. New policies and renewals now …

Unclear Policy Endorsement Makes Excess Insurer Liable for Fuel Spill

Confusing language in a policy issued by an excess insurer puts the carrier on the hook for up to $5 million in clean-up costs after a policyholders’ tanker truck overturned and spilled its load of fuel, the 1st Circuit Court …

Fla. and Okla. Courts Uphold Right to Assign Benefits

Appellate courts in Florida and Oklahoma this week upheld the right of policyholders to assign their right to collect benefits from an insurance claim to contractors, reversing trial court rulings in favor of insurers. The Oklahoma Supreme Court on Wednesday …

Century 21 Sells $175 Million Covid Claim Insurers Won’t Pay

There’s an unusual asset up for grabs in Century 21 Stores’ going-out-of-business sale: a stake in its long-shot legal fight against insurers. The New York department store company, which filed for bankruptcy in September, claims it’s owed more than $175 …

Insurers Win Most — But Not All — Covid Business-Loss Lawsuits

In the multibillion-dollar fight over insurance coverage for pandemic-related business losses, a Florida gynecologist succeeded where more than a dozen professional baseball teams and an iconic Hollywood restaurant failed. Since Covid-19 sparked government-ordered shutdowns in March, judges have dismissed more …

Viewpoint: J.S. Held CEO Refutes ‘Claims Surrogate’ Label

William F “Chip” Merlin is both a nationally known and a respected advocate for policyholders who raises timely issues in his blog. In his post, dated Oct. 20, 2020, Mr. Merlin references a McKinsey study predicting a growing outsourcing model …

Viewpoint: Be Like Mike and Look to Fundamentals to Recover COVID-19 Losses

Michael Jordan, the National Basketball Association icon, once said, “get the fundamentals down and the level of everything you do will rise.” His insight here also holds value for insurance lawyers who are facing their own game seven. Many of …

3rd Circuit Revives Some of Manufacturer’s Claims Against Insurers

Sapa Extrusions purchased 28 insurance policies from eight carriers, but not one of them would reimburse the manufacturer for the cost of a settlement it paid after being sued for shoddy workmanship. A federal appellate court, however, has cleared the …

Virginia High Court: Auto Maintenance Exclusion Means What it Said

The Virginia Supreme Court ruled that an insurer doesn’t have to pay for injuries to a customer who was injured by tire that exploded while it was inflated, and handed business owners another reason not to allow customers in the …

Federal Judge Says Wording in Acuity Policy is Ambiguous

A recent ruling by an Illinois federal judge against Acuity Mutual Insurance Co., found that the use of the word “commencing” is ambiguous as it relates to whether a loss occurs within the policy period. The case, Temperature Service Company, …