SDV Insights

In a win for policyholders, the Third Circuit Court of Appeals recently affirmed a District Court's 2018 ruling, which held that the duty to indemnify follows the duty to defend where a settlement precludes a determination on the facts of the case relative to liability and apportionment.

California, and the greater Western United States, has experienced devastating wildfires over the last ten years. Not only are the fires more destructive than years past, they are no longer constrained to specific seasons. Because one of the effects of climate change is a dryer and hotter climate in the West, California is susceptible to fires year round. This means that it is increasingly a matter of when, not if, your home or business may be susceptible to a wildfire.

In J.P. Morgan Securities Inc. v. Vigilant Ins. Co., the New York Court of Appeals recently issued a policyholder-friendly ruling finding a $140 million disgorgement payment to the SEC was not a "penalty imposed by law" and was therefore not excluded from qualifying as a covered "loss" under a professional policy issued to securities brokers and dealers.

A recent Delaware Supreme Court decision addressed two important issues for directors and officers ("D&O") policyholders incorporated in Delaware: 1) As a matter of public policy, whether insurance is available to cover fraudulent conduct by a corporation's directors or officers; and 2) When a D&O corporate liability policy lacks an effective choice of law provision, which state's law should be applied?

Applying Louisiana law, a recent federal court decision exemplifies why policyholders should thoroughly read claims-made policies to understand when notice is due to insurers and truthfully complete policy applications.

SDV's Natural Disaster Recovery Group presents the Hurricane Handbook: A Policyholder's Guide to Handling Claims during Hurricane Season. This handbook intends to be a practical guide on policyholder issues, both homeowners and business owners alike, when preparing for hurricane season and handling claims after a loss due to a hurricane.

If you suffered damage as a result of a hurricane, you should submit a claim under any insurance policy you have that might apply. This includes flood insurance, homeowner's insurance, renter's insurance, condo insurance, and auto insurance. Some of these policies may have limitations, or even not apply, to losses associated with hurricanes, but the best practice is to submit the claim to ensure no opportunities for coverage missed.

First-party, third-party, builder's risk, professional liability, general liability, wrap-ups, and additional insured status are all potential sources of insurance coverage for a large construction loss.

New York has enacted an unpaid wage law that imposes liability upon upstream contractors. Senate Bill S2766C is intended to provide recourse to construction workers whose employers fail to pay wages owed for completed work.

Recently, in Mt. Hawley Ins. Co. v. East Perimeter Pointe Apts., the Eleventh Circuit Court of Appeals upheld the denial of liability coverage for negligent security claims involving an assault and murder at an apartment complex in Georgia, finding that the insured owner of the complex and its property management firm waited too long to notify their insurers of the incidents.