An insurer that breaches a duty to defend its insured for a lawsuit will typically be held liable for the expenses the insured “incurred in defending the suit, including reasonable attorney’s fees and court costs.” Primrose Operating Co. v. Nat’l Am. Ins. Co., 382 F.3d 546, 559-60 (5th Cir. 2004). Depending on which
California Insurance Commissioner Bulletin Adds Guidance on Smoke Damage Claims
On March 7, 2025, the California Department of Insurance issued Bulletin 2025-7, which provides crucial guidance on the handling of smoke damage claims for properties affected by the Los Angeles wildfires. This bulletin clarifies the Department’s position on insurance coverage for smoke damage and outlines the expectations for insurers in processing these claims. The bulletin
Conditions to Coverage May Be More Conditional Than You Thought
Conditions Precedent to Coverage
Insurance policies typically are subject to certain conditions precedent to coverage. As the name suggests, conditions precedent to coverage are obligations placed on the insured that, in the normal case, must be complied with in order for coverage to attach.
Take a commercial general liability (or “CGL”) policy, for example. An
Where there’s smoke there can be coverage. CA Federal Judge Weighs In.
Introduction
Judge Corley’s (N.D. Cal.) January 10, 2025 decision in Bottega, LLC v. National Surety Corporation provides guidance for commercial policyholders who have closed down their businesses due to wildfires, smoke, ash and soot that is especially timely given the ongoing wildfires in Southern California. The decision highlights the complexities of business interruption insurance claims, distinguishes
The Commercial Court finds in favour of policyholder/its captive insurer on anti-suit injunction and jurisdiction challenge
Reed Smith represented Tyson International Company Limited in obtaining a permanent anti-suit injunction against London market reinsurer, GIC Re, and successfully resisting the reinsurer’s application for a stay under section 9 of the Arbitration Act 1996. The judgment was handed down on 21 January 2025, and you can read it in full here: Tyson International
Key California insurance laws passed after previous major wildfires now play crucial role in ongoing L.A. wildfire crisis
In the midst of the devastating and ongoing Los Angeles wildfires, on January 9, 2025, Insurance Commissioner Ricardo Lara issued the 2025 Annual Notice on behalf of the California Department of Insurance (DOI). The 2025 Annual Notice highlights what Commissioner Lara describes as “the most significant California laws pertaining to property insurance policies, including those
Navigating Property Fire Insurance Claims Amidst the Los Angeles Fires
The wildfires in Los Angeles, including the Palisades, Eaton, Hurst, and Runyon Canyon fires, are fast-moving, destructive, and scary. As of the evening of January 8, 2025, they have caused extensive damage and led to the evacuation of more than 100,000 residents. The Palisades Fire has burned 18 square miles, the Eaton Fire 16.5 square
Court of Appeal finds that Covid-19 was a “catastrophe”
This autumn, the Court of Appeal of England and Wales handed down judgment in UnipolSai Assicurazioni SpA v Covéa Insurance Plc [2024] EWCA Civ 1110. This was an appeal of an Award made in a reinsurance arbitration under section 69 of the Arbitration Act 1996. UnipolSai’s challenge was at first instance before (and dismissed by)
Insurers Explore New AI Coverage Options, Potentially Filling Coverage Gaps for Policyholders Developing Generative AI
Today, generative AI (“Gen AI”) is one of the world’s fastest growing technologies, with businesses around the globe developing, adopting and incorporating machine-learning and AI technologies into their business models. The very nature of this fast-paced and novel technology brings unique risks that can implicate various lines of insurance coverage including, among others, Cyber, Professional
Navigating the insurance regulatory landscape in the UK
The insurance sector in the UK is subject to a complex and dynamic regulatory framework, which aims to ensure the protection of policyholders, the stability of the financial system and the promotion of fair and effective competition.
The main sources of regulation in the UK come from legislation, the rules and guidance of the Prudential