Beware of Sublimits!

Sublimits are one of the most common sources of consternation for our business clients. A “sublimit” is a lesser insurance limit of liability that applies to a specific type of loss and is included within the larger, generally applicable, limit. Here are some common examples: a fiduciary liability policy may Read More

Does Your Professional Liability Policy Cover All of Your Business’s “Professional Services”?

“Professional liability insurance,” which is also called “errors and omissions” (E&O) liability insurance, typically provides coverage for defense costs and settlements or judgments attributable to claims based on “Professional Services.” “Professional Services” is typically a defined term limited to services performed for a third-party for compensation. In addition, the Professional Read More

Policyholders Beware! Courts continue to enforce short limitations periods to dismiss property insurance lawsuits.

In an April 4, 2019 post, Christina warned that property/business interruption insurance policies often contain internal limitations periods that require policyholders to bring any lawsuits within 12 or 24 months. She also gave advice on how to address those short limitations periods. See [Permalink]. In the two months since Christina’s Read More

Should I Cash the Insurer’s Check? Update

In an April 10, 2019 post, Katie Bechina and I explained how cashing the insurer’s check might eliminate rights to additional insurance proceeds under a legal doctrine called  “accord and satisfaction”. See [permalink] In short, we said that, if the insurer and the insured have a bona fide dispute and Read More

Defective Construction, Resulting Property Damage, and Potential CGL Coverage: What’s the law, and How do we deal with it?

The majority of state supreme courts considering the issue over the last 20 years have determined that negligent or unintentional defective construction that causes property damage is an “occurrence”, potentially giving rise to coverage under a Commercial General Liability insurance (“CGL”) policy. See Black & Veatch Corp. v. Aspen Ins. Read More