Applying California law, the United States District Court for the Northern District of California has held that coverage is precluded under a claims-made D&O policy based on two exclusions: a specific circumstances exclusion and a prior notice exclusion. Landmark Am. Ins. Co. v. Navigators Ins. Co., 2018 WL 6591620 (N.D. Cal. Dec. 14, 2018).… Continue Reading
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Professional Services Exclusion Bars Coverage in Connection with Pipeline Explosion
Posted in Exclusion lead-in language (Arising out of), Professional ServicesA California appellate court has held that a pipeline owner’s insurer is not entitled to reimbursement of defense costs and settlement payments from the insurer for the staffing agency that supplied personnel to the pipeline because the professional services exclusion in the staffing agency’s policy unambiguously barred coverage. Energy Ins. Mut. Ltd. v. ACE American… Continue Reading
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