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
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., ISO 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
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