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Beware Misuse of Related-Claims Deemer Clauses in Claims-Made Policies

The hallmark of a claims-made liability policy is coverage exclusively for claims “first made” during the policy period, thus limiting the insurer’s risk to new claims asserted against the policyholder during a finite time...more

Insurance in the Know (Part 2): Settlement Offers Within Policy Limits Heighten Scrutiny on Insurers

Parties to a lawsuit may have vastly different perspectives on the validity and value of a claim, but as a matter of course, the issue of settlement will arise. Trial is an exceedingly expensive endeavor with an uncertain...more

Insurance in the Know (Part 1): Reservations of Rights Can Trigger Right to Independent Counsel

This is the first in a series of discussions about issues that arise on a regular basis after policyholders file an insurance claim. Many liability insurance policies require the insurer to defend the insured. This “duty...more

Insurance Options for Cannabis Businesses Slowly Improving

Obtaining adequate and affordable insurance coverage remains one of the many challenges in the cannabis industry. Most large insurance carriers – adverse to the risk posed by unfavorable federal law – have so far chosen to...more

Wyoming Supreme Court Rules Refinery Company Can Seek Extracontractual Insurance Recovery Against Holdout Insurer

In a landmark victory for policyholders, the Supreme Court of Wyoming found that a subsidiary of Sinclair Oil can invoke statutory bad faith damages after prevailing in a coverage dispute with its insurer, Infrassure. The...more

Under Pressure: Primary Insurer Must Reimburse Excess Insurer after Failing to Settle Case in Texas

As the Fifth Circuit reminded us in a December 21 decision, primary insurers can find themselves in excess insurers’ shoes if they reject settlement demands within their policy limits. In American Guaranty & Liability...more

One Day, Two Different Decisions: Mississippi and Texas Federal Courts Issue Opinions in COVID-19 Insurance Cases

Confirming the growing split of decisions among federal courts addressing COVID-19 insurance issues, two district courts in the Fifth Circuit differed in their interpretation of virus exclusions, with one denying coverage and...more

Insurers Beware: One Insurer’s Settlement Can Support a Bad Faith Failure-to-Settle Claim Against a Nonsettling Insurer

An insurer defending a claim against an insured that could exceed policy limits has a good faith obligation to settle the claim if possible. Failure to do so puts a nonsettling insurer at grave risk. An Eleventh Circuit...more

Keep Viking Pump in Your Long-Tail Claim Toolbox

“Long-tail” claims involve personal injury or property damage from alleged exposure to injury-causing products, such as asbestos or PFCs, over a number of years and multiple policy periods. Courts in various jurisdictions use...more

Fifth Circuit Holds that Insurer’s Payment to Insured’s Independent Counsel Erodes Policy Limits

A recent Fifth Circuit case highlights the potential risks of purchasing a defense-within-limits policy: If an insurer is obligated to hire independent counsel due to a conflict of interest, that counsel’s fees may erode your...more

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