HNRK Coverage Corner

On September 16, 2020, Judge Failla of the SDNY issued a decision in Philadelphia Indemnity Ins. Co. v. Streb, Inc., Case No. 19-CV-366 (KFP), ruling that a CGL carrier had no duty to defend a personal injury action because undisputed “extrinsic evidence” (i.e., facts not alleged in the complaint) conclusively established that an exclusion applied.

The insured (Streb, Inc.), a not-for-profit dance and performance company, was a defendant in a personal injury action brought by a participant in an aerobics class who was severely injured on a trampoline.  Streb’s CGL policy ...

On August 12, 2020, United States District Judge Stephen Bough of the Western District of Missouri issued an important decision for policyholders seeking business interruption insurance for losses arising from closures relating to the COVID-19 pandemic. 

In Studio 417, Inc. v. Cincinnati Ins. Co., Case No. 20-cv-03127-SRB (W.D. Mo.), Judge Bough ruled that the plaintiffs insureds, who operate hair salons and restaurants subject to government-mandated closures, adequately alleged a claim for business interruption insurance coverage. The insureds submitted claims for ...

On April 9, 2020, the Second Circuit issued a decision in Brooklyn Center of Psychotherapy, Inc. v. Philadelphia Indemnity Ins. Co., Docket No. 19-2266-cv, certifying the following question to the New York Court of Appeals:  Can a discrimination claim based on a “failure to accommodate” theory trigger coverage under a general commercial liability policy?

The coverage dispute in this case arose from a disability discrimination lawsuit brought by a deaf woman, who alleged that the Brooklyn Center for Psychotherapy discriminated against her, in violation of state and federal ...

On March 26, 2020, the New York Court of Appeals granted leave to appeal from the First Department's decision in J.P. Morgan Sec., Inc v. Vigilant Ins. Co.,126 A.D.3d 76 (1st Dep't 2018), which held that that a disgorgement payment made as part of the settlement of an SEC enforcement action was a “penalty” and therefore did not qualify as a covered “loss” under a CGL policy. This case has a long history. See our post about the First Department's decision here.

As the novel Coronavirus/COVID-19 spreads throughout the country and the world—and governments respond with travel restrictions and “shelter in place” orders—businesses of all kinds are experiencing sudden losses of revenue on an unprecedented scale.  Business interruption insurance may provide much-needed coverage for some of these losses.  Does your company have a viable business-interruption claim?  As always, the answer depends on the specific circumstances regarding your loss and the terms of your insurance policy.  Given the enormity of the business losses ...