In most jurisdictions, an insurer’s duty to defend is determined based on what is commonly referred to as the “eight corners rule”. Under the eight corners rule, the only relevant pieces of information when determining the duty to defend are the coverage promises contained within the four corners of the insurance policy and the allegations …
Coverage disputes frequently arise when claims contain some elements of damage that are covered and some that are not. The general rule in the duty-to-defend context is clear: where some allegations against a policyholder are potentially covered by the policy, the insurer must defend the entire action. This is often called the “in for a …
This April 9, 2012 decision (Great American Fidelity Insurance Co. and Great American E&S Insurance Co. v. JWR Construction Services Inc. and Gulf Reflections Condominium Association, No. 10-61423 (S.D. Fla. April 9, 2012)) by Judge Huck of the Southern District of Florida (Fort Lauderdale) is interesting for several reasons. The declaratory judgment action was filed …
It’s time to get back to my list of Top 10 Commercial Insurance Myths and Misconceptions. Today we discuss misconception #3: Fraud Claims Are Not Covered. This issue most frequently arises in the D&O insurance context, which I discuss below, but it arises in other contexts as well. Many types of claims, including general liability, …
Insurance companies often are first out of the box to file a declaratory judgement action concerning coverage. Many times the goal of the insurer is to cut off its duty to defend its policyholder in a pending liability lawsuit. Because the duty to defend is broader than the duty to indemnify, to successfully avoid its coverage …