Tag Archives: duty to defend

Maximizing recovery of pre-notice defense costs: Considerations for policyholders

By Eric Toepfer and Evan Knott on Posted in Insurance Coverage, Insurance General
In a world of uncertainty, few things in life are more guaranteed than liability insurers reflexively rejecting claims for pre-notice defense costs, even where there is no legitimate or principled basis to do so. In a perfect world, insureds would immediately notify their insurers as soon as a claim or suit arises to avoid insurers refusing … Continue Reading

The duty to defend requires an early judgment

By Benjamin Fliegel on Posted in Business interruption, Commercial General Liability, Construction Coverage, Corporate and Transactional Insurance Coverage, Cyberliability, Employment Practices Liability, Financial Insurance Coverage, Insurance Coverage, Insurance General
If an insurance company owes a duty to defend, the dispute should be decided promptly, on the pleadings. Any delay undermines the duty to defend. The scope of the duty to defend should be adjudicated on the pleadings as quickly as possible to give policyholders the true value of their policies and the benefit of … Continue Reading

“Myopic” ruling limits policyholders’ ability to recover for common law bad faith in West Virginia

By Mike Sampson and Jorge Rojas on Posted in Commercial General Liability, Construction Coverage, Insurance Coverage, Insurance General, Insurance News of Note
The Supreme Court of Appeals of West Virginia has made it harder for policyholders to prevail on claims of common law bad faith against insurers in that state. In State of West Virginia ex rel. State Auto Property Insurance Companies v. Stucky, No. 17-0257, 2017 WL 4582607 (W. Va. Oct. 10, 2017), West Virginia’s highest … Continue Reading

Beware of Good Intentions: Insurer Cannot Escape Duty to Defend by Interpleading Policy Limits That Were Not Subject to Competing Claims

By Marli Reifman on Posted in Insurance Coverage, Insurance News of Note
On October 6, 2015, the United States District Court, Northern District of California held that an insurer breached its duty to defend by interpleading remaining policy limits and ceasing its defense of its insured.  Doublevision Entertainment, LLC v. Navigators Specialty Insurance Company, N.D. Cal., No. C 14-02848 WHA. Despite language in the policy stating that … Continue Reading

Insurers Beware: Respond Promptly or Lose the Right to Control the Defense

By David E. Weiss and Cristina Shea on Posted in Commercial General Liability, Insurance Coverage, Insurance News of Note
The tables may be turning. Insurers often seek to avoid their coverage obligations by invoking time limitations in their policies for providing claim notifications. On the other hand, these same insurers routinely take their sweet time in responding to claims, contending that they need time to “investigate” even before making a decision whether or not to … Continue Reading
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