December 2024 Insurance Update

There’s been plenty of litigation over whether construction defect claims qualify for coverage under a CGL policy. This month, we discuss two federal circuit court rulings (First and Seventh Circuits) that reach opposite conclusions. The divergence, however, lies not on whether faulty workmanship is an “occurrence,” but whether the business risk exclusions apply. Waiver factored into the Seventh Circuit’s decision, which explains why the rulings differed.

Amber Heard and Johnny Depp were back in the news. Well, sort of.  The Ninth Circuit had to decide whether Amber Heard’s counsel, whom she selected to defend her in Johnny Depp’s defamation suit, was no longer “independent” after her insurer reserved rights. Heard argued there was a conflict of interest and was looking to have the insurer pay for new “independent” counsel. The Ninth Circuit didn’t see a conflict.

Road rage is a serious issue. And unfortunately, we’re seeing more physical confrontations among drivers. A West Virginia federal court explains why these claims fall outside the coverage of an auto policy.

Sometimes it’s not always clear when a “claim” is first made. That’s important for triggering a claims-made policy. The Eleventh Circuit provides some guidance.

We hope you find our update informative.