McGuireWoods Insurance Recovery Blog

McGuireWoods Insurance Recovery Blog

Insights for Policyholders

L. D. Simmons

L. D. Simmons L. D. Simmons II is a co-chair of our insurance recovery practice and has 20 years of experience representing clients in state and federal courts in high exposure insurance disputes.

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Friday’s Massive Malware Attack – Cyber Insurance and the Importance of IMMEDIATE Notice to Insurers

Cyber Insurance
On Friday, May 12, 2017, a massive ransomware attack swept across the globe. As of the date of this post, the attack reportedly had infected more than 100,000 organizations in 150 countries. The attack continues to propagate in different and more malicious forms and it is likely some of our clients have been impacted. This… Continue Reading

Insurance Coverage for Lost Profits Arising from Cyber Attacks on the U.S. Power Grid – Contingent Business Interruption Coverage for the Internet of Things

Business Interruption, Cyber Insurance
The Washington Post reported last week that Russian hackers had penetrated the U.S. utility grid through Burlington Electric Department, a Vermont utility.  Although the utility later clarified that the attacked computer was not connected to the grid and that the connection to Russia was not confirmed, hundreds of news sources picked up the story, demonstrating… Continue Reading

Avoiding the Minefields of Claims-Made Insurance Coverage

Best Practices, Policy Interpretation
This is the first in a series of posts relating to what we will call the “minefields” of claims made insurance coverage.  Fifty years ago, most insurers issued liability insurance policies on “occurrence” policy forms.  As insurers expanded their coverage offerings for professional and executive risks in the 1960s and 1970s, they began to use… Continue Reading

Fifth Circuit Narrowly Construes Prior Knowledge Exclusion in Claims-Made Policy and Affirms Bad Faith Verdict

Policy Interpretation, Professional Liability Insurance
Insurers frequently rely on “prior knowledge” exclusions in an effort to avoid coverage under claims-made liability insurance policies.  In OneBeacon Insurance Co. v. T. Wade Welch & Associates et al., the Fifth Circuit recently affirmed a $28 million judgment following a jury verdict against One Beacon Insurance Company, finding that the insurer had wrongfully declined… Continue Reading

Fourth Circuit Affirms Denial of Coverage for Accidental Gunshot Injury

Duty to Defend, Duty to Indemnify, Policy Interpretation
On April 14, the Fourth Circuit held that an insurer owed no defense or indemnity coverage for an underlying personal injury suit against the policyholder’s employee, a security guard who accidentally shot a friend while socializing at the business off-hours. The court concluded that the firing of the gun was not within the scope of… Continue Reading

8th Circuit: Financial Institution Bond Provides Coverage for Fraudulent Wire Transfers

Additional Insured Coverage, Bad Faith, Business Interruption, Crime Insurance, Cyber Insurance, Financial Institution Bonds
With policyholders facing increased losses from hacking and business email compromise, insurers are fighting hard to escape their obligations under financial institution bonds, crime policies and cyber insurance policies. In a case that bolsters policyholders seeking coverage for digital fraud, the U.S. Court of Appeals for the Eighth Circuit held that a bank’s financial institution… Continue Reading

Arizona Court Rules That Chubb Cyber Policy Does Not Cover Credit Card Theft Losses

Crime Insurance, Cyber Insurance
As cyber attacks increase at an unprecedented pace, more and more businesses are purchasing cyber insurance to protect against that risk. The insurance industry now faces an avalanche of claims, and those claims now are moving to the litigation phase. In one of the first decisions interpreting a cyber insurance policy, an Arizona federal court… Continue Reading

Pennsylvania Supreme Court Rules that an Insured Receiving a Defense Under Reservation of Rights May Settle Without the Insurer’s Consent

Uncategorized
In a case with significance beyond the Commonwealth of Pennsylvania, the Pennsylvania Supreme Court recently ruled that an insured, while receiving a reservation of rights defense from its insurance company, may settle the underlying case over the objection of the insurer and obtain reimbursement from the carrier.  The case is styled Babcock & Wilcox Co.… Continue Reading