Can an insurance company deny coverage to a homeowner who did nothing intentional because another insured under the policy committed a crime or intentional tort? The California Supreme Court heard argument on this issue last week in Minkler v. Safeco Insurance Co. of America, which involved allegations that a homeowner, Betty Schwartz, negligently failed to stop her adult son, David, who was Minkler’s baseball coach and lived with Betty, from sexually molesting Minkler when he was a teenager.
Continue Reading California Supreme Court To Decide Interplay Between Severability-of-Interests Clause And Intentional Acts Exclusion
Property Insurance
Federal District Court Rules Against Can Manufacturer in Coverage Claim Involving Damage to Fruit Product
By Amber Chrystal on
Posted in General Liability Policies, Property Insurance
A district court in California recently found that an insurer was not liable where its insured sought coverage under its Commercial Umbrella policy for loss it suffered as a result of the manufacture of a defective product. Ruling in favor of the insurer on partial summary judgment, the Northern District Court held that there was…
Preparing for a Mediation Involving Coverage Issues
Adequate preparation is essential for any mediation, and mediations involving insurance coverage issues are no exception. Whether the focus of the mediation is the insurance coverage dispute itself, or whether the insurer is attending a mediation of the underlying action (with an expectation that it will fund any settlement), the insured can and should take…
Business Interruption Coverage
By David Smith on
Posted in General Liability Policies, Property Insurance
The recent earthquake in Eureka, California (as well as the devastating events in Haiti), reminded me of the financial challenges and complexities faced by businesses large and small following a catastrophe. While the Eureka situation is in no way comparable to the devastation in Haiti, businesses there will be facing challenges and potentially lengthy shut-downs. …
Supermarkets Prevail in Coverage Suit for Blackout Damage
By Amber Chrystal on
Posted in General Liability Policies, Property Insurance
Wakefern Food Corp. v. Liberty Mutual Fire Ins. Co., a recent case in the appellate division of the Superior Court of New Jersey, broadly construed the term “physical damage” in an all-risk insurance policy to include loss of function and loss of use.
Plaintiffs in this case, a group of supermarkets, sued Liberty Mutual for…