Executive Summary Blog

Executive Summary Blog

Legal developments affecting professional liability insurers

Tag Archives: South Carolina

No Coverage for “Data Breach” Claim under CGL Policy

Posted in Cyber Policies and Issues
A Florida federal district court, applying South Carolina law, has held that a claim arising out of a data breach alleging that an insured failed to safeguard personal information did not trigger personal and advertising injury coverage under a commercial general liability policy.  Innovak Int’l, Inc. v. The Hanover Ins. Co., No. 8:16-cv-2453-MSS-JSS (M.D. Fla.… Continue Reading

Insurer Obligated to Pay Full Policy Limits on Loss Despite Potentially Concurrent Policies With Competing “Other Insurance” Clauses

Posted in Other Insurance
A federal court in South Carolina has held that an insurer breached its contract with its insured by not paying the full policy limits even though its policy included an “other insurance” clause and there was another insurance policy that potentially covered the same loss.  Michelin North America, Inc. v. Federal Ins. Co., No 6:17-1599… Continue Reading

Alternative Dispute Resolution Provision Not Satisfied Where Parties Communicated with Mediator During Cooling Off Period

Posted in ADR Clause
The United States District Court for the District of South Carolina has held that an insurance policy’s alternative dispute resolution condition precedent prior to initiating litigation was not satisfied where the parties communicated with the mediator during the provision’s cooling-off period, even though the parties disputed whether the communications concerned insurance coverage.  Allied World Surplus… Continue Reading

Multiple Clients’ Claims Against Accountant Deemed Related and Subject to Lower Limit of Liability Due to Insureds’ Prior Knowledge of One Client’s Claim

Posted in Prior Knowledge/Warranty Exclusion, Related Claims and associated exclusions
The United States District Court for the District of South Carolina, applying South Carolina law, has held that multiple clients’ claims against an accountant and his former firm constitute a single claim under a professional liability policy because they are logically connected to the accountant’s loss of faculty from Parkinson’s disease.  CAMICO Mutual Insurance Co.… Continue Reading

Fourth Circuit Holds that Rescission is Not Available to Innocent Co-Insureds

Posted in Rescission
The United States Court of Appeals for the Fourth Circuit, applying South Carolina law, has affirmed a trial court’s determination that a professional liability insurance policy afforded coverage to innocent co-insureds despite fraudulent misrepresentations in the application submitted by an individual applicant posing as a doctor. Evanston Ins. Co. v. Agape Senior Primary Care, Inc.,… Continue Reading