Tag Archives: General Liability

Fifth Circuit to Decide Whether Indemnification Claim for Credit Card Fines Is Covered Under Specialty Retailer’s D&O and Corporate Liability Insurance Policy

An insured seeking coverage for credit card fees assessed against its third-party payment processor following a data breach recently filed an appeal in the Fifth Circuit Court of Appeals. Spec’s, a liquor store chain with over 160 locations throughout Texas, suffered two major data breaches of its credit card payment system, resulting in the loss … Continue Reading

Insurance Coverage for Employee Claims

In an important decision, the Second Circuit Court of Appeals ruled that an employer’s liability exclusion does not preclude coverage for claims brought by an employee of one insured against another insured. In a recent article in Lodging Magazine, Hunton & Williams LLP’s insurance coverage lawyers discuss the significance of the Second Circuit’s ruling. … Continue Reading

Ninth Circuit to Decide Whether IP Exclusion Applies to Forever 21 Trademark Suit

The Ninth Circuit will decide whether Great Lakes Reinsurance must defend clothing company, In and Out, against a trademark infringement suit by Forever 21. The dispute focuses on exclusionary language in the general liability policy issued by Great Lakes to In and Out, which broadly bars coverage for claims stemming from violations of intellectual property rights, but which also excepts from the exclusion claims for copyright, trade dress and slogan infringement occurring in the company's advertisements. … Continue Reading

Steps to Avoid Rescission of Recall Insurance Policies

Many retailers today face an increasing risk related to product recalls, which can result in extensive losses and a variety of liability claims. Hunton and Williams LLP’s Insurance Coverage attorneys recently authored an article in which they address New York law on rescission and steps that can be taken to avoid rescission. This blog post contains a link to the full article. … Continue Reading

Fear of the Unknown: Insurance Coverage for Recalls Where the Cause of Loss is Unknown

In the context of product recalls, the exact cause of damage or contamination may be unknown. This creates uncertainty, and in turn, a coverage dispute over whether the cause of damage is covered under the policy. In a recent article, Hunton attorneys analyze three recent cases involving coverage for retail industry insureds where the courts found the cause of loss to constitute an "occurrence," triggering the policy’s coverage. … Continue Reading

Sharing Business Contracts with a Benchmarking Consultant? You Might Be Breaching Vendor Agreements

Benchmarking studies performed by outside consultants are an increasingly common way for retailers to gain insight into how their contracts stack up against others in the industry. Hiring a consultant to review your vendor contracts for benchmarking purposes could, however, expose you to risks. Before you undertake an engagement that requires sharing any information with a third party, you should understand and manage the potential risk.… Continue Reading

If You Don’t “WannaCry” After a Cyber Attack, Review Your Cyber Insurance Coverage

As we previously reported, beginning last Friday, and still occurring today, one of the worst and most widespread malware attacks has impacted more than 200,000 victims in at least 150 countries. The attack is a reminder of the importance of cyber insurance coverage. Businesses affected by these types of attacks can incur significant loss, including for the ransom amount, any resulting business interruption, the cost of any lost data, damage to customers and other third parties, along with associated public relation expenses.… Continue Reading

Pharmaceutical Distributor Sued – A Tough Pill for Insurers to Swallow

On July 19, 2016, the United States Court of Appeals for the Seventh Circuit held that a general liability insurer’s duty to defend suits seeking damages “because of bodily injury” was triggered when the state of West Virginia sued a pharmaceutical distributor, alleging it had contributed to an epidemic of prescription drug abuse, causing the state to spend money to care for addicted citizens. … Continue Reading

The New Wave of Consumer Class Action Targeting Retailers: What is the TCCWNA?

TCCWNA. The very acronym evokes head scratches and sighs of angst and frustration among many in the retail industry. The New Jersey Truth-in-Consumer Contract Warranty and Notice Act was passed in 1981 to protect consumers from allegedly deceptive practices in consumer contracts, warranties, notices and signs. Continue reading for an in-depth view of the TCCWNA and what retailers can do to minimize risk. … Continue Reading

“As Seen on TV” — Insurer Must Defend Well Known Television Marketer in Data Privacy Suit

GDPRIn a June 1, 2016 decision, the Second Circuit Court of Appeals reminded retailers and product manufacturers to look to their insurance coverages when defending against consumer class actions. The Second Circuit required CNA Financial Corporation to defend E. Mishan & Sons, Inc. – best known for its “As Seen on TV” products – in two class actions alleging a conspiracy to trap customers into recurring credit card charges and that Emson sold private consumer information that it obtained through its product sales.… Continue Reading

“All Sums” and “Vertical” Exhaustion Apply to Excess Coverage for Asbestos Liabilities

Recently, the New York Court of Appeals held that each of several excess liability insurers can be wholly responsible for the entire extent of their policyholders’ asbestos liabilities. The Court further held that “vertical” exhaustion would apply; rejecting the insurers’ attempt to apply “horizontal” exhaustion before upper-layer policies must respond. … Continue Reading

Hunton Attorneys Provide Primer on Contamination Coverage for Food Retailers

Syed Ahmad and Matthew McLellan, attorneys in Hunton & Williams LLP’s Insurance Coverage Counseling and Litigation team, recently authored an article entitled A Primer On Insurance Coverage for Food Contamination Losses, which provides an overview of insurance protection for food contamination issues that retailers, wholesalers and manufacturers may encounter. … Continue Reading
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