Insights
Publications

In Verizon Decision Careful Review of Insurance Policies Expands Coverage

June 3, 2021 Blog
Policyholder Perspective Blog

In Verizon Communications Inc. v. National Union Fire Insurance Co. of Pittsburgh, Pa., 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 policy, based on their contention that the subsidiary out of which the liabilities arose was not a subsidiary when the policy was purchased. And finally, it handed policyholders a practical and valuable gift of universal application, holding that an insurer who wrongfully refuses to defend a claim cannot contest the reasonableness of the fees incurred by the policyholder to defend the case.

Whether or not it is successfully challenged on appeal, the Verizon decision is an important reminder not to make assumptions as to what is or isn’t covered under any type of insurance policy. Coverage depends on the particular language of the policy under review and the particular facts for which claims are sought.

Read the full blog post here.

Firm Highlights

Publication

“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...

Read More
News

Farella Braun + Martel Attorneys Named to 2021 Northern California Super Lawyers and Rising Stars

Thirty-seven Farella Braun + Martel lawyers were named to the Super Lawyers and Rising Stars lists of top attorneys in Northern California for 2021. 2021 Farella Northern California Super Lawyers: George Argyris – Estate...

Read More
Publication

What to Do When Commercial Leases End Up in Bankruptcy

The COVID-19 pandemic is forcing many businesses to close, leaving landlords in the lurch. The COVID-19 pandemic continues to shake up the nation’s economy. Long-standing companies such as JC Penney, J. Crew, Neiman Marcus, Modell’s...

Read More
News

51 Farella Lawyers Listed in The Best Lawyers in America© 2022 and Best Lawyers: Ones to Watch

Forty-six Farella Braun + Martel lawyers were selected by their peers for inclusion in the 2022 edition of The Best Lawyers in America © .  Five Farella lawyers were named to Best Lawyers: Ones to...

Read More
News

Key Cyber Insurance Issues Hitting the Cannabis Industry

Tyler Gerking was quoted in the article "Key Cyber Insurance Issues Hitting the Cannabis Industry." Read the full article here . View full webinar below.

Read More
Publication

How to Guard Against 3 Cannabis Cyber Attack Risks

Cyber attacks are now commonplace. Ransomware attacks, in particular, have skyrocketed in frequency and size. High-profile data breaches have cost businesses in the United States millions of dollars in losses and incalculable reputational harm...

Read More
Publication

Cyber Insurance for the Cannabis Industry

Farella's Shanti Eagle (moderator), Nate Garhart and Tyler Gerking, along with guest speakers Javier Gonzalez and Michael Peters from PL Risk Advisors, discuss "Cyber Insurance for the Cannabis Industry." Cannabis businesses have cyber security...

Read More
Publication

Maximizing Business Insurance Coverage Benefits After a Fire

Unfortunately, we again write while wildfire is devouring homes and businesses in Napa and Sonoma, and threatening many more. We’ve previously posted tips about first steps that you should take in the event your...

Read More
Publication

Insurance for Nonprofits: Managing Risk in Risky Times

Mary McCutcheon, Cynthia Rowland and guest speaker, Joan Dove from Gallagher, discuss "Insurance for Nonprofits: Managing Risk in Risky Times" at the April Nonprofit Education Series. Nonprofit organizations—and their directors and staff—are not immune to...

Read More
News

Chambers USA 2021 Recognizes Farella Braun + Martel Attorneys, Practices

Farella Braun + Martel announces that Chambers USA has recognized 13 lawyers and 6 practice areas in the legal directory’s 2021 edition. Individual Rankings: Tyler Gerking – Insurance: Policyholders Jeffrey Hamilton – Cannabis Law...

Read More