In Crown Energy Co. v. Mid-Continent Cas. Co., Case No. 116989, 2022 WL 2128667 (Okla. June 14, 2022), the Oklahoma Supreme Court concluded that seismic activity caused by water waste disposal wells in oil and gas operations constituted an “occurrence” that was covered under a commercial general liability (CGL) policy. The Court also found that
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When Negligence Is Not an Accident: No “Occurrence” for Intentional Land Clearing
A new California Court of Appeal decision, Ghukasian v. Aegis Sec. Ins. Co., 78 Cal.App.5th 270 (2022), see our Alert here, affirms that a mistaken belief about the right to clear land does not transform an insured’s intentional acts into an “occurrence.” This is despite some policyholders’ argument that Liberty Surplus Insurance Co. v.…
Indiana Supreme Court Refuses to Hold Commercial Crime Policy Covers Ransomware Attack
Typically, comprehensive cyber
insurance policies, rather than commercial crime policies, respond to claims of
data breach and other cybercrimes. With the rise in hacking and ransomware
attacks worldwide, businesses that may have chosen not to purchase cyber
insurance may find themselves without coverage in the event of a cyberattack.
A recent decision by the Indiana…
The Insured Should Have Seen It Coming: Nevada Court Enforces Prior Acts Exclusion
Liability policies commonly contain exclusions precluding coverage
when the insured knew or should have known that wrongful acts occurring prior
to a policy’s effective date could later result in a claim. In Alps Property & Casualty Insurance
Company v. Kalicki Collier, LLP, No. 319CV00709MMDCLB, 2021 WL 1032290, at
*1 (D. Nev. Mar. 17, 2021), the…
Pennsylvania District Court Finds No Coverage for Foreseeable Damages to Third-Party Property Caused By Faulty Workmanship
In Berkley Specialty Ins. Co. v. Masterforce Constr. Corp., No.
4:19-CV-01162, 2021 U.S. Dist. LEXIS 14006 (M.D. Pa. Jan. 26, 2021) (Brann,
J.), the Court recently concluded that, under Pennsylvania law, all reasonably
foreseeable damages to third-party property caused by faulty workmanship do not
constitute an “accident” sufficient to trigger coverage under a commercial
general…
Pennsylvania District Court Finds No Coverage for Foreseeable Damages to Third-Party Property Caused By Faulty Workmanship
In Berkley Specialty Ins. Co. v. Masterforce Constr. Corp., No.
4:19-CV-01162, 2021 U.S. Dist. LEXIS 14006 (M.D. Pa. Jan. 26, 2021) (Brann,
J.), the Court recently concluded that, under Pennsylvania law, all reasonably
foreseeable damages to third-party property caused by faulty workmanship do not
constitute an “accident” sufficient to trigger coverage under a commercial
general…
When 1% Equals 100%: New York Rejects Fault Based Approach to Additional Insured Coverage
By Laura Dowgin
When a named insured is only 1%
responsible for an accident, what percentage of indemnity coverage is owed to
an additional insured? A recent New York federal court says 100%. In New York,
additional insured coverage may very well extend to the additional insured’s
own independent negligence, so long as the named insured was at…
When 1% Equals 100%: New York Rejects Fault Based Approach to Additional Insured Coverage
By Laura Dowgin
When a named insured is only 1%
responsible for an accident, what percentage of indemnity coverage is owed to
an additional insured? A recent New York federal court says 100%. In New York,
additional insured coverage may very well extend to the additional insured’s
own independent negligence, so long as the named insured was at…
Extrinsic Evidence and the Duty to Defend in Texas: To Be or Not to Be?
Does a CGL Policy’s “Business Description” or “Class Code” Limit Coverage?
One way a CGL insurer can narrow otherwise broad bodily injury and property damage coverage is by activity. Activities that face similar risk can be grouped using an activity classification code, which can be incorporated into the policy through a class limitation endorsement.
For instance, a policy issued to an individual (for any business of…