In Illinois insurance coverage actions, an insurer can be estopped from asserting any policy defenses to coverage if the insurance company fails to take proper action. The general rule of estoppel provides that an insurer taking the position that a complaint potentially alleging coverage under a policy that includes a duty to defend may not […]
Insurance Litigation Defense
Client Reporting by a Insurance Defense Attorney: When to Report, Not If
Insurance defense counsel must always keep the lines of communication open with their carriers and be diligent in responding to client inquires. Client reporting is a mandatory task every defense attorney must perform. The various stages of litigation call for different reporting periods. Also, new material information or events could call for extra client reporting.
Insurance Defense and Bad Faith Actions: Requirements to Plead the Reasonable Probability Standard
Those working in insurance defense litigation are familiar with bad faith claims which can arise when insurers breach the duty to act in good faith when responding to settlement offers. According to the Illinois Supreme Court: “The ‘duty to settle’ arises because the policyholder has relinquished defense of the suit to the insurer. The policyholder […]
Potential Trap For Litigation Defense: Taking Care of Lienholders in Settlements
Settling a personal injury lawsuit is the usually the objective for litigation defense attorneys. When the case gets settled, the defense attorney must review the entire file for all liens whether they are medical or otherwise. Protecting a medical provider’s lien is a duty, not only of the plaintiff’s attorney, but also of the defense […]
Why An Excess Insurer Cannot Seek Equitable Contribution From A Primary Insurer
There are many situations where one insurance coverage company will seek contribution from another insurance company for defense costs and indemnity payments. However, this does not give insurers a carte blanche to file lawsuits against each other seeking reimbursement.
Denial of Coverage and Reservation of Rights Letters Pose a Trap for Unwary Counsel
Counsel for insurance companies are frequently called upon to offer advice about or to actually draft a letter to an insured either denying coverage or providing a defense while reserving the carrier’s rights regarding coverage. This usually happens when it is not clear if the claim made against the insured is covered under the terms […]
Video Evidence: A Double-Edged Sword For Insurance Adjusters
Every breaking news story that might have been reported through eyewitness accounts now features at least one or more videos of the actual event shot by onlookers. Every person with a smartphone or other camera-equipped digital device is a potential source of a video clip for the evening news.
District Court Finds No Duty to Defend Under Cyber Liability Policy
A judge in the United States District Court for the District of Utah denied Defendants’, Federal Recovery Services and Federal Recovery Acceptance, Inc. (collectively “Defendants”), Motion for Partial Summary Judgment seeking a determination that Plaintiff, Travelers Property Casualty Company of America (Travelers), owed a duty to defend under a cyber liability policy.
Insurer Denies Cyber Insurance Claim Following Data Breach
On May 7, 2015, Columbia Casualty Company (Columbia) filed a declaratory judgment action in the United States District Court for the Central District of California seeking a declaration that it is not obligated to provide defense or indemnification for its insured, Cottage Health System (Cottage), under a cyber liability policy.
Workers’ Compensation Carrier Has No Liability Where No Employer-Employee Relationship Exists Between Injured Party and Insured
The Second District Court held that a claim is not compensable under a Workers’ Compensation Liability policy when an insured had no employer-employee relationship with an injured person and, therefore, absent liability on the part of an employer to an employee, a workers’ compensation carrier bears no liability.