HNRK Coverage Corner

A recent decision from the U.S. District Court of Western District of Washington  touches on a number of important insurance coverage issues:  policy reformation, the effect of an insured’s late notice of a claim, and the insurer’s burden to prove applicability of a policy exclusion. In General Casualty Company of Wisconsin v. Reed Hein & Assoc. LLC et al., the court’s consideration of these issues resulted in opposite outcomes for two insurers. While the insured’s CGL carrier (General Casualty) successfully avoided a duty to defend, the D&O insurer (RSUI) was found to have ...

This week at the Coverage Corner, we are looking at a recent Seventh Circuit decision that offers guidance on two issues under Indiana law: (1) an excess insurer’s duty to participate in a pre-suit mediation where the underlying policy limits have not yet been exhausted but “would be” exhausted in the event of a settlement; and (2)  whether a party qualified for coverage as an additional insured based on facts outside the underlying complaint.

Background

The insurance coverage dispute in Atlanta Gas Light Company & Southern Company Gas v. Navigators Insurance Company, Case Nos ...