There was no coverage for claimed property damage and loss of income where the insured failed to meet its initial burden of showing that business equipment had sustained “direct physical loss” or that the claimed damage was “accidental.” ( MRI … Read More

A provision in a commercial general liability insurance policy requiring the insurer to “defend the insured against any ‘suit’ seeking … damages” to which the insurance applies includes the duty to defend the insured in proceedings under the Calderon Act. … Read More

An insured’s alleged negligence in supervising an employee does not constitute an “occurrence,” or “accident,” within the meaning of a general liability policy. ( L.A. Checker Cab Cooperative, Inc. v. First Specialty Ins. Co. (2010) 2010 WL 235430) Facts L.A. … Read More

The California Court of Appeal has held that an automobile liability policy’s “step-down” provision, which reduced liability limits for permissive users, was “conspicuous, plain and clear” and thus limited the coverage that was available to a permissive user. ( Dominguez … Read More

The California Supreme Court has held that based on a policy’s “severability” clause, an exclusion for the intentional act of “an” insured only applied to the particular insured who committed the intentional act, and did not apply to another insured … Read More

A general liability policy unambiguously provided that the policy’s self-insured retention could only be satisfied by the named insured, and not by someone else such as an additional insured. ( Forecast Homes , Inc . v . Steadfast Ins . … Read More

Interpreting a policy that provided business interruption coverage for net income “and” continuing normal operating expenses, the California Court of Appeal has held that even if the insured was operating at a net loss, the insured is still entitled to … Read More

When an insured has two policies through the same insurer, providing a defense under one policy does not insulate the insurer from liability for its alleged breach of the duty to defend and settle under a second policy. ( Risely … Read More

An insured’s failure to answer questions at an examination under oath (even on advice of counsel), combined with failure to submit a complete and supported proof of loss form, defeated the insured’s suit for breach of contract and bad faith. … Read More

Fax blasting is not covered under a commercial general liability policy’s “advertising injury” or “property damage” coverages, because fax blasting does not involve the publication of “material that violates a person’s right of privacy,” nor is it the result of … Read More