November 2024 Insurance Update

In this month’s update, we’re discussing cases involving climate change, hurricanes, cryptocurrency, and aerial spraying.

We begin in Hawaii where that state’s high court became the first to decide whether greenhouse gas emissions are pollutants under an insurance policy.  The court also considers whether there is an “occurrence” when the insured is aware of the risk of harm but acts anyway (acts recklessly).

Hurricanes have led to many insurance claims in Louisiana.  A Louisiana statute prohibits enforcement of arbitration clauses, although some foreign insurers can enforce their arbitration clauses under an international treaty known as the Convention.  On certified question, the Louisiana Supreme Court answers whether arbitration clauses in surplus lines policies are enforceable, and whether domestic insurers can use equitable estoppel to compel arbitration where a foreign insurer is involved.

An insured’s cryptocurrency was stolen from his hot wallet.  Did he suffer a “direct physical loss”?  The Fourth Circuit weighs in.

A farmer’s aerial spraying damaged his neighbor’s crops.  A Colorado federal district decides which insurer, if any, is on the hook.

We hope you enjoy the update.

Rob Tugander and Greg Mann