Executive Summary Blog

Executive Summary Blog

Legal developments affecting professional liability insurers

Category Archives: Exclusion lead-in language (Arising out of)

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Declaratory Judgment Complaint Not Subject to Insurer’s Motion to Dismiss Based on Conversion of Funds Exclusion

Posted in Coverage Litigation - Declaratory Judgment Actions, Exclusion lead-in language (Arising out of)
A New Jersey federal district court has held that a declaratory judgment and breach of contract action against a professional liability insurer was not subject to dismissal for failure to state a claim based on the policy’s conversion of funds exclusion as a matter of law because the court could not conclude whether conversion occurred,… Continue Reading

Contractual Liability Exclusion Bars Coverage for Negligence Claim

Posted in Breach of Contract – coverage for amounts due pursuant to contract, exclusions, Exclusion lead-in language (Arising out of)
The United States Court of Appeals for the Eleventh Circuit has held that coverage was precluded for a negligence claim because the claim arose out of the insured’s contractual liability and was thus barred by the contractual liability exclusion contained in the D&O policy. Bond Safeguard Ins. Co. v. Nat’l Union Fire Ins. Co. of… Continue Reading

Claim Asserting Innocence in Alleged Copyright Infringement “Arises Out of” Copyright Infringement and Triggers Exclusion

Posted in Exclusion lead-in language (Arising out of)
Applying Massachusetts law, the United States District Court for the District of Massachusetts has held that a policy exclusion for injury “arising out of” copyright infringement bars coverage for a lawsuit alleging that the claimant infringed the insured’s software copyrights, even in the absence of a claim for infringement by the insured. PTC, Inc. v.… Continue Reading