Courts Consistently Reject Insurer's Attempts to Create a Tort Claim of "Reverse" Bad Faith
on August 19, 2015
The Sixth Circuit, applying Kentucky law, is the latest jurisdiction to reject an insurance company's attempt to bring a lawsuit against a policyholder for "reverse" bad faith. Generally, the tort of bad faith arises from an insurer's action or inaction with respect to servicing the policy of insurance it sold to the insured. Bad faith normally arises from the insurer's claims handling or failure to pay for a covered claim. Recently, insurers have sought to bring a tort claim for bad faith against policyholders for various activities, including misrepresentation of the risk being insured and failure to cooperate in the investigation of a claim. Numerous courts have resoundingly rejected the insurers' attempts and have refused to recognize a claim of "reverse" bad faith....
Insurance for Trademark Infringement: Why the Best Defense May Cost You in the End
on August 10, 2015
Companies purchase commercial general liability ("CGL") insurance policies to protect themselves from unforeseen issues that may arise. One area of coverage that is still evolving relates to intellectual property claims, including trademark infringement. While CGL policies often provide coverage and defense for various intellectual property claims, it is not always easy to determine when the insurer's duty to defend a trademark claim has been triggered. Sometimes, obtaining coverage for such a trademark claim means sacrificing a stronger defensive position....
Are You Protected When You Use Uber or Lyft? The Pros and Cons of Ride-Sharing Companies for Passengers
on July 16, 2015
Companies such as Uber and Lyft provide a much-welcome alternative to taxis and public transportation. These companies are rapidly expanding into local markets. Uber, for example, has expanded to 57 countries and offers ride-sharing locally in both Cleveland and Akron, Ohio. With their convenience and relatively low pricing, many believe that these ride-sharing companies are a better alternative to taxis and public transportation. However, skeptics are asking if these companies are too good to be true. One important issue passengers should consider involves insurance coverage. What happens if your Uber driver gets into a car accident and you are injured? Does the driver's personal insurance policy or Uber's insurance policy, for that matter, cover your injury? What about Uber and Lyft's own liability for passengers' injuries? A brief analysis of these concerns follows....
Cyber Risk Policy Gets One of its First Coverage Rulings in Federal Court: Case Update
on July 1, 2105
Reports of cyber-attacks on U.S. companies and government agencies have become disturbingly common the last two years starting with the Target data breach during the 2013 holiday season. The most recent of these data breaches occurred in early June as hackers stole personnel data and Social Security numbers from U.S. Office of Personnel Management. Lucas Blower gave a succinct overview of what risks a cyber-risk policy could potentially cover. As Lucas pointed out, there are many different types of cyber risk policies and potential exclusions....
Buyer Beware: Insurance Coverage for Successor Entities After Closing
on June 15, 2015
In the frenzy of many corporate merger and acquisition negotiations, the concept of insurance coverage for pre-closing losses is often a topic that receives little attention. However, parties to a transaction are well-advised to pay particular attention not only to who will bear responsibility for pre-closing losses, but also to whether those losses can be addressed in the deal in such a way as to preserve insurance coverage for them. The Ohio Supreme Court provided some guidance on this issue in Pilkington North America v. Travelers Cas. & Sur. Co., 112 Ohio St.3d 482, 2006-Ohio-6551, 861 N.E. 2d 121 (Ohio 2006). Though the Court's decision in Pilkington was issued nearly a decade ago, it is worth repeating – with careful planning, parties to a transaction often can (and should) structure their deal to maximize the potential for insurance coverage....
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