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• In Verizon Decision Careful Review of Insurance Policies Expands Coverage In Verizon Communications Inc. v. National Union Fire Insurance Co. of Pittsburgh, Pa.[1] the Delaware Superior Court ruled that Verizon was entitled to a defense under its D&O policy for fraudulent transfer claims. Although the decision relies on unique facts and specific policy language, it provides guidance on how to exploit minor but critical differences in policy language to expand the company’s coverage beyond claims involving securities fraud. The opinion also rejected the insurers’ efforts to limit coverage under a separate... More
• “Unfair Trade Practices” Exclusion Does Not Extend to Consumer Protection Claims Two phrases combined in a single exclusion—“alleging, arising out of, based upon or attributable to any violation of any law…” and “as respects… unfair trade practices” could inspire carriers to make trouble for policyholders seeking coverage for consumer protection claims. Fortunately, a recent federal decision recognizes that California rules of policy construction limit the scope of this exclusion, in line with a policyholder’s reasonable expectations of coverage. In James River Ins. Co. v. Rawlings Sporting Goods Co. Inc., Case No. CV... More
• Directors & Officers Liability Issues and the Coronavirus: Is That a “Thing”? Over the last few weeks we have seen a number of informative articles discussing the crucial issue of coverage for business interruption claims arising out of government shutdowns of businesses to inhibit the spread of COVID-19, here. As the economic disruption from these efforts continues, however, we are likely to see impacts in the Directors & Officers Liability market – not only from claims that trigger D&O policies, but also additional challenges in placements and renewals of D&O programs. Insurance Placement To... More
• Farella Braun + Martel Insurance Recovery Partners Participate in American College of Coverage Counsel Annual Meeting Tyler Gerking was inducted as a Fellow of the American College of Coverage Counsel’s 7th Annual Meeting in Chicago, Illinois on May 9, 2019. Mary McCutcheon presided over the meeting as she completed her term as President of the College. The American College of Coverage Counsel (ACCC), established in 2012, is the preeminent association of U.S. and Canadian lawyers who represent the interests of insurers and policyholders. The ACCC’s membership currently stands at over 300 Fellows. Its mission is to advance the... More
• Ninth Circuit Asks the California Supreme Court to Interpret the Scope of Personal Injury Coverage On January 15, 2019, the Ninth Circuit certified the following question to the California Supreme Court: Does a commercial liability policy that covers “personal injury,” defined as “injury… arising out of… [o]ral or written publication… of material that violates a person’s rights of privacy,” trigger the insurer’s duty to defend the insured against a claim that the insured violated the Telephone Consumer Protection Act by sending unsolicited text message advertisement that did not reveal any private information?  Yahoo! Inc. v. National Union... More
• Insurance in a Time of Crisis: Role of Insurance Counsel in Crisis Management I recently participated in a panel at the Association of Business Trial Lawyers Annual Meeting – “Bad News Delivered: The Board Meeting and Crisis Management.”  Among other topics, the panel discussed the role of insurance counsel in crisis management, and addressed the following questions: Who Is The Client?  When meeting with a board in a time of crisis, it is critical to identify whether your client is the company or the board.  And if it is the company, the board must understand... More
• A Policyholder Perspective on the Unique Challenges of a Three-Way Mediation I recently participated in a negotiation with an insurer who had denied coverage for an underlying errors and omissions claim in the mid-seven figures. The insurer’s counsel and I exchanged stern letters, each explaining why our respective client’s position was absolutely correct, and the other’s absolutely wrong. The client’s broker arranged a meeting with principals and counsel on both sides. At the meeting, the insurer’s counsel and I debated our respective positions once more. Neither of us conceded any possibility... More
• Insurance Broker Series: Michael Ferraro, Woodruff-Sawyer & Co. Farella’s Insurance Recovery Group lawyers regularly collaborate with and learn from different players and functions within the insurance industry. To provide more value to our readers, we have reached out to a series of insurance brokers to create the Insurance Broker Series Q&A. Our latest installment is with Michael Ferraro, Partner & Senior Vice President with Woodruff-Sawyer & Co.  How long have you been in the insurance industry? 22 years total (18 years at Woodruff Sawyer) How did you get into the insurance industry? I... More
• Insurance Broker Series: Clark Morton, Woodruff-Sawyer & Co. Farella’s Insurance Recovery Group lawyers regularly collaborate with and learn from different players and functions within the insurance industry. To provide more value to our readers, we have reached out to a series of insurance brokers to create the Insurance Broker Series Q&A. Our latest installment is with Clark Morton, Partner & Senior Vice President with Woodruff-Sawyer & Co.  How long have you been in the insurance industry? 18 years How did you get into the insurance industry? I studied economics, finance and business in... More
• Insurance Broker Series: Manpreet Gill, Marsh Farella’s Insurance Recovery Group lawyers regularly collaborate with and learn from different players and functions within the insurance industry. To provide more value to our readers, we have reached out to a series of insurance brokers to create the Insurance Broker Series Q&A. Our latest installment is with Manpreet Gill, Managing Director, Communications, Media & Technology Practice Leader, Western Region with Marsh.  How long have you been in the insurance industry? 14 years How did you get into the insurance industry? On campus recruiting... More