Risk Management

March 18.2009

Insureds Rights Under Insurer "Litigation Guidelines"

A lawsuit is filed, the defendant gives notice to the insurers, and in the meantime engages counsel to start the defense. Several rounds of coverage opinion letters go back and forth, and finally – the insurer accepts the defense of the lawsuit (usually subject to a reservation of rights). Meanwhile, defense counsel has been doing his or her job. So surely, now all is well. Defense bills incurred before the insurer agreed to defend are submitted for reimbursement. But then the insurer’s “litigation guidelines” arrive – explaining just how much of the insured’s defense the carrier will NOT pay for....

Read the Article | Comments (0) | TrackBack | Posted in General Liability Policies, Risk Management

March 04.2009

Coverage for Implicit Disparagement of Another’s Products

Disputes over intellectual property that include allegations of anti-competitive conduct may raise a potential for insurance coverage. Common allegations in this context which can trigger a duty to defend under the “personal injury” or “advertising injury” coverages found in the standard CGL policy include disparagement of another’s products. A recent decision by Judge James Ware in the Northern District of California held that allegations of implicit disparagement of a competitor’s products create a potential for coverage. In E.piphany, Inc. v. St. Paul Fire & Marine Ins. Co. (N.D. Cal. Dec. 16, 2008), false representations by an insured concerning only its...

Read the Article | Comments (0) | TrackBack | Posted in General Liability Policies, Intellectual Property Claims, Risk Management