News & Insights

Practice Area: Coverage

RIPENESS AND THE DUTY TO INDEMNIFY IN ALABAMA

The general rule in Alabama is that a duty to indemnify cannot be determined before liability is established. But are there exceptions to that rule? In James Snell v. United States Insurance Co., 102 F.4th 1208 (11th Cir. 2024), the Eleventh Circuit weighed in and unequivocally answered “yes.” Snell involved coverage under a commercial general…
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Appellate Court Affirms Summary Judgment In Favor Of Insured For Coverage Of Losses From Ransomware Attack

A New Jersey appeals court affirmed summary judgment for insured pharmaceutical company Merck in a cyber coverage dispute regarding a “Hostile/Warlike Action” exclusion included in a $1.75 billion “all risks” property insurance program. Merck & Co., Inc. v. Ace American Ins. Co., No. A-1879-21, A-1882-21, 2023 WL 3160845 (N.J. Sup. Ct. App. Div. 2023).   …
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Eighth Circuit Affirms Policy Provides No Coverage For Business Interruption

The United States Court of Appeals for the Eighth Circuit recently became the first appellate court to weigh in on the litany of lawsuits filed by businesses seeking coverage for business interruption resulting from COVID-19-related restrictions. Oral Surgeons, P.C. v. Cincinnati Ins. Co., 2 F.4th 1141 (8th Cir. 2021). In a big win for insurers,…
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Appellate Courts To Hear Business Owners’ Claims For Insurance Coverage For Business Interruption

This week has seen a few notable updates in the ongoing dispute regarding insurance coverage for business interruption resulting from COVID-19-related business closures, as federal and state appellate courts finally have had the opportunity to weigh in on these arguments. On September 29, 2020 in Iowa, United States District Judge Charles R. Wolle granted with…
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Business Owners Experiencing Some Success In Covid Business Interruption Lawsuits

The Eleventh Circuit continues to dismiss suits brought by business owners seeking coverage for losses caused by COVID-19. But policyholders in other jurisdictions have achieved some notable wins so far in 2021. While “success” often means a policyholder merely survived dismissal on the pleadings, some courts have ruled in favor of policyholders in later stages…
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Southern District Of Alabama Grants With Prejudice Insurer’s Motion To Dismiss Business Owner’s Declaratory Action Seeking Coverage For Covid-Related Business Interruption

On October 21, 2020, the Southern District of Alabama issued its first opinion addressing a COVID-19-related claim for lost income under the “business interruption” provision of an “all-risk” policy. Hillcrest Optical, Inc. v. Cont’l Cas. Co., No. 1:20-CV-275-JB-B, 2020 WL 6163142 (S.D. Ala. Oct. 21, 2020). After the plaintiff closed its business in compliance with…
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Georgia Supreme Court Rules In Favor Of Insurer On Failure To Settle Claim

The Georgia Supreme Court granted certiorari in Hughes v. First Acceptance Ins. Co. of Ga., Inc., 343 Ga. App. 693, 808 S.E.2d 103 (2017), to review whether the Court of Appeals erred in reversing the grant of summary judgment to the insurer on the insured’s failure-to-settle claim. The Court also asked the parties to address…
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Eleventh Circuit Rules In Favor Of Insurer Over Computer Fraud Claim

Last week, the Eleventh Circuit in InComm Holdings, Inc. v. Great American Insurance Company affirmed a district court decision holding an insurer is not obligated to reimburse a prepaid debit card processer for a $10.7 million loss. The insured operated a network that sells “chits,” each of which has a specific monetary value, to consumers…
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