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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Options Trading Exclusion Unambiguously Bars Coverage for Investor Claims

Posted in Exclusion lead-in language (Arising out of), Exclusions
The United States District Court for the District of Utah has held that an errors and omissions policy’s “options trading” exclusion applied to bar coverage for claims resulting from an insured investment company’s high-risk trade.  Allegis Invest. Servs., LLC v. Arthur Gallagher & Co., 2019 WL 1002364 (D. Utah Mar. 1, 2019).… Continue Reading

Specific Circumstances and Prior Notice Exclusions Bar Coverage for Trustee’s Lawsuit Against Former Directors and Officers

Posted in Exclusion lead-in language (Arising out of), Related Claims and associated exclusions, Wrongful Act
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

Professional Services Exclusion Bars Coverage in Connection with Pipeline Explosion

Posted in Exclusion lead-in language (Arising out of), Professional Services
A 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