Insurance Update

We hope you had an enjoyable holiday and that your new year is off to a good start.

Here’s a quick look at the cases discussed in our January Insurance Update.

• Nevada Supreme Court Says Insurer That Has Not Acted in Bad Faith May Still Be Liable for Any Consequential Damages Caused By the Breach of Its Duty to Defend
• Vermont Supreme Court Finds That False Pretense Exclusion Does Not Bar Loss Arising from Email Scam
• Kentucky Supreme Court Decides That Water Exclusions Did Not Preclude Coverage of Water Damage Caused by Ruptured Water Main Line
• Tenth Circuit Concludes That Insurer Had No Duty to Defend Action Where Policies Limited Coverage to Insured’s Duties as Corporate Officer
• Eighth Circuit Rules That Corporate Officer and Company Were Not Entitled to Defense in Suit Alleging Breach of Asset Purchase Agreement
• Texas District Court Finds That Defects, Errors, and Omissions Exclusion Barred Coverage for Damage to Building’s Windows
• Washington District Court Rules That Insurer Had No Duty to Defend Insured for Environmental Claims Where It Was Not Legally in a Defensive Position

The Nevada Supreme Court decision has generated the most buzz, and is a decision that insurers should be aware of.

The Vermont Supreme Court decision is another interesting case involving insurance coverage for cyber-related scams.  This body of law continues to develop, but recent cases have tended to favor policyholders.

We hope that you find this update informative.

Rob Tugander and Greg Mann

Click here to read the update.