Insurance Update

Courts took up some interesting insurance questions this past month.  Here’s some we address in our June Insurance Update.

When a government sponsored cyberattack infects computers worldwide, does the war exclusion apply?

A professional liability policy will often pay the insured’s costs of responding to subpoenas or disciplinary proceedings.  What about search warrants?

People pay a premium price for Kona coffee.  If a company says it uses Kona beans in its blend, when it doesn’t, is that disparagement for purposes of personal and advertising injury?

Sticking with personal and advertising injury policies, they cover “the use of another’s advertising idea in your advertisement.”  If the insured gets permission to use another’s logo on its clothing line, but fails to pay a royalty as promised, is that claim causally connected to advertising?

A complaint uses the word “negligence” when accusing the insured of intentionally dumping hot, greasy wastewater into a sewer.  Is the insured entitled to a defense?

If a jury finds a fracking company didn’t perform its job in a workman-like manner, does that give rise to an “accident”?

The insurer defends under a reservation of rights and later settles the claim against the insured.  The insured wasn’t out-of-pocket a penny, but claims that by reserving rights, the insurer caused him to suffer emotional distress.  Does this bad-faith claim survive?

You can find answers to these questions in this month’s update.  We hope you find it informative.

Rob Tugander and Greg Mann