TittmannWeix

As the NBA season tips off, did you know insurers are still resolving claims relating to the COVID impacted 2019-2020 and 2020-2021 seasons? On March 11, 2020, the NBA abruptly stopped its season due to the COVID outbreak. While the season was concluded in Disney World that summer, fans did not return to NBA arenas until late in the 2021 season, resulting in major losses for ownership groups across the league. Many teams looked to their insurance carriers to recoup some of the losses suffered as result of the pandemic. In 2021, the Sacramento Kings filed suit against their insurers, Factory Mutual, for denying its claim for $850 million dollars for cancelled and postponed events resulting from government orders. On October 21, 2024, the U.S. District Court for the Eastern District of California filed a judgement awarding summary judgement for the insurer. The Court held that the policy’s exclusion for “any condition of property” due to a “virus” unambiguously barred coverage. The Court applied a previous ruling Eastern District of California in which the NHL’s San Jose Sharks attempted to make similar claims for COVID related losses under an identical policy to the one related to the Kings.   Sacramento Downtown Arena LLC et al. v. Factory Mutual Insurance Co. et al., No. 21-cv-441, (E.D. Cal. Oct. 21, 2024). #TittmannWeix #TW #EffectiveCreativeResponsive #BetterClientService #insurance #insurancelaw #insurancecoverage

Here at TittmannWeix, we love a good “other insurance” issue. Did they get it right? Let us know in the comments!    It’s often said that when two policies each say they are excess over any other insurance, the policies’ excess clauses cancel each other out, and the two policies share in the loss. But even if both policies say they are excess, the analysis is not always so simple.     Yesterday, the Eleventh Circuit highlighted this issue in Gemini Ins. Co. v. Zurich Am. Ins. Co. (No. 22-13495). Gemini’s and Zurich’s policies both contained excess clauses. But Gemini’s policy also stated that it “shall not contribute with any other insurance,” while Zurich’s stated that if the Zurich policy covered a loss on the same basis (excess or primary) with another policy, Zurich would pay a pro rata share of the loss. Gemini argued, based on its policy’s “shall not contribute” language, that its policy was excess of Zurich’s. Zurich argued the other insurance clauses were mutually repugnant, so that both carriers should share in the loss pro rata. The Eleventh Circuit, applying Florida law, agreed with Gemini, holding that Gemini’s policy was excess to Zurich’s.     The Court’s holding provides a useful reminder that when dealing with other insurance issues, the answers aren’t always easy. Subtle differences in policy language and state-specific precedents can have a decisive impact on the outcome.    #TittmannWeix #TW #EffectiveCreativeResponsive #BetterClientService #insurance #insurancelaw #insurancecoverage 

Working in insurance is a treat! 🍬, but insurance policies can be tricky. 🎃 Spooky things to look out for when reviewing insurance policies: 👻    * Review endorsements carefully so no surprises jump out later. Endorsements change the Policy and not accounting for those changes could take you down a scary road.  * Eerily absent endorsements. Check the schedule of endorsements to make sure they are all there.  Sometimes an endorsement will be listed in the declarations but not present in the policy materials.   * Words that may not be what they seem. 🎭 Review definitions, definitions amended by endorsements, and state law interpretations of material undefined words before reaching coverage conclusions.   * Additional state law requirements may lurk in the shadows. State law may impose minimum coverage limits or specific communication requirements. Pay attention to these details so you don't get tricked.    #TittmannWeix #TW #EffectiveCreativeResponsive #BetterClientService #insurance #insurancelaw #insurancecoverage 

This week, the Pennsylvania Supreme Court denied review of a dispute between a Bible app maker and its insurer over coverage for loss of the insured’s electronic data which was deleted by a hacker. In so doing, the state’s highest court let stand the appellate court’s ruling on an issue of first impression: the meaning of the phrase “your computers” in a first-party property policy.    Under the policy at issue, coverage for loss of electronic data was limited to that which “resides in your computers.” The insured’s data, which included its application programming interface software and video content published to users of the app, was hosted on a server owned by GoDaddy and licensed by the insured prior to being deleted by hackers.    In reviewing the trial court judgment in favor of the insured, the appellate court concluded that term “your computers” is ambiguous because it can reasonably be interpreted either to be limited to computers actually owned by the named insured or to include computers not technically owned by the insured but which the insured had a right to use. The trial court’s judgment in favor of the insured was ultimately overturned by the appellate court on other grounds.    What do you think? Did the appellate court get this issue right?      #TittmannWeix #TW #EffectiveCreativeResponsive #BetterClientService #insurance #insurancelaw #insurancecoverage 

How are you mitigating risk in light of the recent hurricanes?  With hurricane season in full swing, property insurers must be especially vigilant in promptly raising objections during appraisal panel deliberations.  Otherwise, retroactively raising an objection may result in waiver.      The Eleventh Circuit recently rejected Westchester’s bid to overturn an appraisal award on grounds of the appraiser’s apparent bias.  According to the court, Westchester should have raised an objection to the appraiser’s partiality at the time it discovered the issue—which it did not.  The court noted that a party must generally object on grounds of bias before an award is issued “if it knows or should have known of the conflict during proceedings but says nothing.” But a party cannot retroactively object after dissatisfaction with an unfavorable award.  The court further rejected Westchester’s argument that the appraiser’s disclosure came “too late” for Westchester to “restart the process,” noting that Westchester did not explain why it could not have objected when it learned of the partiality issue.    Biscayne Beach Club Condo. Ass’n v. Westchester Surplus Lines, 111 F.4th 1182 (11th Cir. 2024). #TittmannWeix #TW #EffectiveCreativeResponsive #BetterClientService #insurance #insurancelaw #insurancecoverage 

When is it worthwhile for an insurance company to retain an expert? One situation is where the facts of the loss are in dispute. A recent Ohio appellate court decision is illustrative. There, the insurer determined that there was no storm damage to a home based on an engineer’s inspection of the home’s roof. Although the insurer was found liable to the insured at trial for breach of contract, the appellate court affirmed summary judgment in favor of the insurer on the insured’s bad faith claim. The court reasoned that the claim for coverage was “fairly debatable” and there was a “genuine dispute over the facts giving rise to the claim,” so the insurer “had a reasonable justification for concluding that [there was not] a covered loss.” See Larrison v. Westfield Ins. Co., 2024-Ohio-4591 (Ohio Ct. App. Sept. 19, 2024).    While the case is in the context of property damage, there are other situations where an expert may be helpful, particularly if the claim is highly technical or turns on industry specific rules. How have you used an expert? #TittmannWeix #TW #EffectiveCreativeResponsive #BetterClientService #insurance #insurancelaw #insurancecoverage 

These are exciting times for the legal profession! The integration and use of new AI tools are enhancing productivity like never before. From automating document review to improving legal research, AI tools are streamlining routine tasks, allowing lawyers to focus on advising clients and building stronger cases, which boosts efficiency and reduces costs.      By being transparent, accountable, and by adhering to strong data privacy policies, lawyers can harness AI responsibly and provide better service to their clients.  Here at TW, we are always looking for ways to provide creative, effective, and responsive legal services to our clients.  Recently, TW team members came together to meet with AI and legal professionals to learn more about how AI can enhance legal services to better serve clients.     #AI #TittmannWeix  #TechInsuranceLeaders  #BetterLegalServices 

Another great NetDiligence® Philadelphia is in the books! Highlights included the Litigation Update Panel with Woodruff Sawyer’s Bridget Quinn Choi, walking around Philly with CyberClan's Mikel Pearce and catching up with Jessica Centeno, CPLP, ExecPLP, RPLU, CLCS Shawn Melito and Luke Green at Lyra Recovery’s networking event. #TittmannWeix #TechInsuranceLeaders #EffectiveCreativeResponsive #BetterClientService #TW #insurancelaw  

Insurance fraud affects everyone.  An estimated $308.6 billion is lost to insurance fraud in the U.S. each year, costing each consumer an estimated $900 annually.       Recently, Raymond Tittmann and Michael Walsh presented training on strategies to investigate and document possible insurance fraud, focusing on best practices under the various burdens of proof and claim handling obligations across the country.  Request appropriate documents, conduct interviews and EUOs, and notice inconsistencies or gaps.  Best practices will help insurers deter fraudulent activities and pay only legitimate claims.     Retaining legal counsel and specialists can be important, especially with the advent of artificial intelligence used to generate false evidence.    #TittmannWeix #TW #EffectiveCreativeResponsive #BetterClientService #insurance #insurancelaw #insurancecoverage 

🌟 September Highlights at TittmannWeix 🌟     As we roll into conference and pumpkin spice season, we look back on our September 2024 accomplishments and challenges and reflect on what we can do better and what went well:     ✅  On behalf of our client Seneca Insurance Company, we secured a favorable decision which clarifies California law around equitable subrogation and bad faith between insurers.     ✅ We attended the IAPP Privacy.Risk.Security and the CLM Construction conferences reuniting with old colleagues and clients and meeting new ones. Tara Bodden Violet Sullivan, CIPP/US CIPM Rishabh Agny Derrick Mullin      ✅ We hosted the first Tech Insurance Leaders Community West Coast meetup with Clark Hill Law and Gil Cujcuj Maryam Rad Edwin Covert Brandon Welch;    ✅ We carpooled to NetD with Shevani Jaisingh Anthony Hess Sharliemae Henry, MBA and Stacie Lilien and attended the IWCA NetD event at Philadelphia Distilling with power broker Jessica Centeno, CPLP, ExecPLP, RPLU, CLCS; and    ✅ We welcomed Andrew Nagode home from his secondment with a Lloyds syndicate and continued to expand our team welcoming our new intern Audrey Krueger and two new associates Hope Williams and Elaine Kim.    Can’t wait for October – sweater weather, NetD, and all things spooky for Halloween!     #TittmannWeix #InsuranceLaw #LegalExcellence #Teamwork #ClientSuccess