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

What’s the difference between the “Employee Benefits Liability” coverage under a CGL Policy and coverage under a Fiduciary Liability Policy?

Commercial General Liability (CGL) insurance often include an “Employee Benefits Liability Coverage” endorsement (see, e.g.,┬áISO CG 04 35 03 05). The endorsement grants coverage for damages attributable to any negligent act, error, or omission in the “administration” of an “employee benefit program.” The coverage under this endorsement is similar to, Read More

Recent Eighth Circuit Decision on Total Pollution Exclusion Limits CGL Insurance Coverage for Contaminated Product Claims

On Monday, April 29, 2019, the Eighth Circuit ruled that the “total pollution exclusion” (CG 21 49 or similar) to a CGL insurance policy eliminated coverage for claims against a policyholder that supplied a contaminated ingredient incorporated in livestock feed. See Restaurant Recycling, LLC v. Employer Mutual Casualty Co., No. Read More

Should I Cash the Insurer’s Check?

In the midst of a coverage dispute, an insurer will often issue a check to the policyholder for less than the amount the policyholder contends is due. On these occasions, the policyholder will ask, “Should I cash the check?” The policyholder’s legitimate fear is that cashing the check will eliminate Read More

Kansas Supreme Court Rules that Insurer’s Failure to Timely Reserve Rights may Expand Scope of Coverage

In October 2018, the Kansas Supreme Court ruled that a liability insurer may be estopped (or in plain English, prevented) from denying coverage because of its failure to issue a timely reservation of rights letter, even if the estoppel results in the expansion of coverage beyond the scope provided under Read More