Insurance Coverage for Employee Theft: How Unknown Facts can Preclude Coverage
on December 22, 2016
Recently, in Construction Contractors Employers Group, LLC v. Federal Insurance Company, the Sixth Circuit Court of Appeals affirmed an adverse ruling against a policyholder over its claim to recover one million dollars that was misappropriated by an employee. Although the plaintiff, Construction Contractors, had an employee theft insurance policy, the defendant insurer, Federal, was able to successfully argue that the one million dollar misappropriation was part of a "single occurrence" which encompassed an earlier loss that the plaintiff had discovered prior to purchasing the insurance policy....
Lloyd's Leads the Way? How a Coverage Dispute in New York Could Have Far-Reaching Impacts on the Energy Industry
on October 21, 2016
While the American energy industry continues to undergo a cooling-off period, disputes related to insurance coverage for damages allegedly caused by fracking is heating up. Over two years ago, Brouse McDowell warned policyholders to be aware of how their first-party insurance policies may or may not respond to damages allegedly caused by fracking or fracking-related activities such as underground disposal of fracking wastewater. Now, a federal lawsuit in New York may provide guidance on whether a pollution-liability policy affords coverage for similar claims....
Are You Afraid of the Dark? After a Power Outage, What Exclusions Might You Find Lurking In Your Policy?
on August 31, 2016
The thunder rolls, the lightning strikes and the room goes dark. There is no power and as the minutes turn to hours, your operations come to a halt and you must send your employees home. The electric company promises to restore power in 3 days, but will your company be able to bear the loss that comes with an extended power outage?...
Two Bites at the Apple: The Potential Impact of Lexington Ins. Co. v. DunnWell, LLC on Orders Declining to Find a Duty to Defend
on August 24, 2016
Experienced insurance-coverage attorneys and brokers know that in many cases the biggest expense to the insured is not the repayment of whatever damages are alleged by the plaintiff, but rather the insured's own defense costs. Therefore, one of the main objectives of coverage litigation is often to ensure that the insurer honors its duty to pay for the defense of its insured. Parties frequently file motions for summary judgment on the issue of whether the insurer owes a duty to defend, and the outcome of those motions can be significant to settlement negotiations. What if neither party's motion for summary judgment is granted, though? A recent decision from Ohio's Ninth District Court of Appeals may allow the parties another bite at the apple by virtue of an immediate appeal....
Food Recalls: Are You Covered?
on July 14, 2016
It seems like every month a new food is being recalled. Ever since the advent of the Food Safety Modernization Act (FSMA) in 2011, there has been an increase in food recalls. However, this increase is not an indication that manufacturing and packaging facilities have become lax or negligent but the result of higher standards, increased inspections and an attempt to proactively prevent contamination instead of simply responding to outbreaks. In addition to these changes, the FSMA now allows the government to issue a mandatory recall when there is evidence or concern that a food item could be contaminated instead of relying on the companies to issue voluntary recalls. As a result, recalls are now issued when a product could potentially be contaminated. To date, companies have always initiated voluntary recalls. Food recalls can be very expensive and it is important to know if your damages are covered by your commercial general liability (CGL) policy and, if so, to what extent?...
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