The New Jersey Law Journal reports that defense contractors’ employees who worked in Iraq and Afghanistan are suing Prudential Insurance, alleging that it sold policies without disclosing that war-zone deaths and injuries were not covered.
The policies, sold to civilians at U.S. military bases overseas, were worthless as a result, the plaintiffs charge in Menkes …
Here’s a fairly common circumstance in large commercial liability claims. A policyholder settles with the carrier in Layer 1 for less than its limits, leaving a gap between Layer 1 and the next layer up. Does the carrier in Layer 2 then have an obligation to contribute to settlement with the underlying plaintiff?
Example: I…
In State Automobile Mutual Ins. Co. v. Flexdar, the Indiana Supreme Court has just held that the so-called “absolute” pollution exclusion contained in general liability insurance policies from 1986 forward is ambiguous and unenforceable. The Court basically found that the exclusion does not define “pollutant” with sufficient specificity, and that, read literally, the exclusion…
Spring is a time of rebirth and hope, especially for baseball fans. No matter how badly your team played last year, when March rolls around, you’re tied for first! That is, unless (like me) you’re a fan of the woeful New York Mets. After just a few weeks of spring training, their third baseman already…
Every once in awhile, we come across a case that calls to mind the formal legal term: “Eeeeww.” Here’s one that’s now before the New Jersey Supremes, and that (if you can get past the ghoulishness) involves two important questions:
(1) When does an “occurrence” take place under a liability policy?
(2) Can a court…
I’m getting ready to participate in a panel discussion at the New Jersey Institute for Continuing Legal Education with some of my friends from both sides of the bar (policyholder and carrier). I’ll be discussing the rules of construction in insurance policies, particularly as they relate to ambiguity, so I’m re-reading some of the more…
In no particular order, the three areas of liability claim that seem to make carriers the most unhappy (or suspicious) are (1) employment claims; (2) environmental claims; and (3) “Coverage B”-type claims (intellectual property, false advertising, etc.). The Great Pomegranate Wars fall into category (3). (I should note for accuracy that “Coverage B” is a…
In my experience, there are three main reasons why companies delay in giving notice to their carriers of potentially covered claims. First, the underlying suit is an “oddball,” such as an intellectual property claim, that the risk manager thinks isn’t covered. Second, the company is worried that its premiums will rise. Third, the person responsible…
The late, great comedian Alan King used to tell a story that went like this: “The other day, my house caught fire. My lawyer said, ‘Shouldn’t be a problem. What kind of coverage do you have?’ I said, ‘Fire and theft.’ The lawyer frowned. ‘Uh oh. Wrong kind. Should be fire OR theft.’”
Recently, a…
Lots of times, businesspeople who buy insurance make (reasonable) assumptions. For example: “If I have employment practices liability insurance, I must be covered for claims arising out of employment practices…right?”
Mmmmm…not so fast. Most EPLI policies contain a hidden gap that’s wide enough to drive an eighteen-wheeler through.
EPLI coverage came on the market a…