Covered Except if Pollution Exclusion Includes Virus Plaintiffs own and operate 23 hotels in N.H., Massachusetts, and N.J. Plaintiffs purchased $600 million of insurance coverage from defendant insurers, whose policies are identical with the exception of certain addenda. The policies generally extend coverage for direct physical loss or damage to all real and personal property owed or used by plaintiffs. ... Read More
No Summary Judgment on Civil Authority Provision In The Court of Common Pleas of Allegheny County, Pennsylvania, applying Pennsylvania law, granted, in part, an insured’s motion for summary judgment finding that it was entitled to insurance coverage for losses it sustained because of COVID-19 under its policy’s business income protection provision. However, the court found that issues of fact... Read More
BI Claim Fails to State a Claim Due to No Physical Loss or Damage In the first federal appellate court decision on a COVID business interruption claim, the United States Court of Appeals for the Eighth Circuit, applying Iowa law, affirmed the dismissal of the breach of contract and bad faith claim for failure to state a claim. Oral... Read More
Communicable Disease Exclusion Bars Coverage Under Event Cancellation Policy The United States District Court for the Northern District of Illinois, in an opinion by Judge Gettleman, applying New York law, granted Those Certain Underwriters at Lloyd’s of London, Severally Subscribing to Policy No. RSC-1224 and known as Argo Managing Agency Limited and Markel Syndicate Management Limited’s (“Lloyd’s”) motion to dismiss... Read More
Civil Authority Coverage Inapplicable Because Employees and Patients Had Access The United States District Court for the Northern District of Illinois, in an opinion by Judge Reinhard, applying Illinois law, dismissed with prejudice the amended complaint filed by Riverside Dental of Rockford, Ltd. (“Riverside”) against Cincinnati Insurance Company (“Cincinnati”). Riverside purchased a commercial property insurance policy which included a building... Read More
Potential Coverage if Not Faced with Virus Exclusion The United States District Court for the Northern District of Illinois, in an opinion written by Judge Kocoras, applying Illinois law, denied Continental Casualty Company’s (“Continental”) motion to dismiss its insureds’ first amended class action complaint. The insureds sought coverage under policies issued by Continental for losses stemming from COVID-19. Specifically, the... Read More
Virus Exclusion Bars Coverage for Lost Business Income The United States District Court for the Northern District of Illinois, in an opinion written by Judge Kennelly, applying Illinois law, granted Westfield National Insurance Company’s (“Westfield”) motion to dismiss a complaint brought by two of its insureds stemming from losses due to COVID-19. The insureds sought declaratory judgment and alleged,... Read More
Lost Diamond Ring “Being Worn” Requirement a Fact Question The United States District Court for the Northern District of Illinois, in an opinion written by Judge Kness, applying Illinois law, denied Crestbrook Insurance Company’s (“Crestbrook”) motion for judgment on the pleadings after finding that Crestbrook did not prove, beyond a doubt, that the term “being worn” was unambiguous. Crestbrook filed... Read More
Insurer May Sue Defense Counsel Retained to Defend its Insured An accounting firm that Arch Insurance Co. insured, Spear Safer, was sued for accounting malpractice. Arch defended Spear Safer under a professional liability policy that gave the insured the right to appoint legal counsel with Arch’s consent. Arch retained Kubicki Draper to represent its insured and the case eventually... Read More
Coverage Action Limited to Reasons Stated in Denial Letter The United States District Court for the District of Rhode Island, applying Rhode Island law, held that when an insurance company denies coverage, it should be held to the reasons given to its insured in its denial letter and later barred from introducing into evidence or arguing for any grounds that... Read More
