SDV Insights

The Supreme Court of Ohio recently ruled that a ransomware attack on a medical billing company failed to cause direct physical damage to the company's computer software as required under its business owners policy. Prior to this ruling, a ransomware attack on a business computer system and resultant claim under an all-risk commercial property insurance policy had not been addressed in Ohio.

Federal and state courts tackled a myriad of interesting insurance-related issues this past year. See our top 10 most influential coverage decisions of 2022 and look ahead to a few cases to keep an eye on as 2023 unfolds.

Recent trends in workers' compensation coverage suggest that the number of claims are likely to continue to increase, specifically for high-risk industries, like the construction industry. This article explores multiple trends and issues which are likely to impact workers' compensation insurance for construction companies.

General conditions and general requirements are terms of art in the construction industry that describe the indirect costs necessary to complete a construction project. After physical loss or damage to a project, the following question often arises: Are "general conditions" and "general requirements" covered under a builder's risk policy?

Following the basic notice requirements to provide timely and adequate notice of a claim contained in all insurance policies seems elemental to triggering an insurer's duty to defend a policyholder. However, even sophisticated insureds can sometimes miss the simple notice provisions in their policies

First-party insurance coverage is typically structured on the basis of one of two types of insuring agreements: "All Risks" and "Covered Peril." While the difference may seem innocuous, the ramifications of having one versus the other can be monumentally important in a disputed claim scenario. For the reasons discussed in this article, we recommend that, in almost every situation, the insured should aim to secure an "all risks" policy form.

Contra proferentem is one of the few Latin phrases that lawyers remember from law school, in the ranks with res ipsa loquitur, prima facie, and ipso facto. Contra proferentem literally means "against the offeror" and the doctrine is used when courts interpret ambiguous contract language.

SDV is sending out this important notice for all out-of-state contractors to contact their workers' compensation brokers and insurers to ensure their out-of-state workers' compensation policy will cover workers in Florida. The state of Florida does not recognize the "All States Endorsement" on workers' compensation policies, and in some instances could potentially result in out-of-state contractors being without coverage in the State of Florida.

Can an indemnification clause in a commercial lease obligate a tenant's insurer to defend a landlord? Recently, the United States District Court for the Northern District of New York said, "Yes!" On August 9, 2022, the district court issued a decision in ConMed Corp. vs. Federal Insurance Company, holding that the indemnification clause in a policyholder's lease triggered the insurer's duty to defend the landlord in an action arising out of the tenant's negligence.

Most states have some version of an Unfair Claim Settlement Practices Act (UCSPA), which is intended to prohibit insurers from engaging in unfair claims settlement practices. While the UCSPA is based off a model act, there are differences from state to state. For example, New Jersey's UCSPA does not allow a private cause of action against an insurer - instead, the Commissioner of Banking and Insurance retains sole enforcement authority under the UCSPA.