The Insurance & Reinsurance Report

P.J.P. Mechanical Corp., v. Commerce and Industry Ins. Co., 2009 NY Slip Op 04984 (App. Div. June 18, 2009)

The policyholder purchased a commercial general liability policy from the insured which covered work it was performing for the third-party general contractor.  A pipe burst in one of the houses that the policyholder worked on and the general contractor alleged it was due to the negligence of the policyholder.  No suit was instituted but the general contractor withheld the remaining contract balance owed to …

Supervalu Inc. v. Wexford Underwriting Managers, Inc.

(Cal.Ct.App. June 22, 2009)

The court affirmed summary judgment in favor of the insurers, upholding the insurers' interpretation of “occurrence” related to excess workers' compensation policies.  Plaintiff was required to pay a self-insured retention every time a worker sustained injury due to an accident or occupational disease, which is the occurrence triggering coverage.  The court held that “occurrence” refers to the cause of employee damage, rather than loss to the insured. 

For a copy of …

In light of recent world events, it comes as no surprise that the kidnap, ransom and extortion insurance policies are being discussed as a way to provide comfort to international businesspersons who travel in areas where kidnappings are common.  By way of background, kidnap, ransom and extortion provide compensation for ransom payments, loss of income, medical care and, possibly, interest derived from any bank loans needed for one’s release.

In considering the practical realities involved in these types of transactions, however, kidnap, ransom and …

Flexsys America L.P. and XL Insurance Company Ltd. (2009 EWHC 1115)

Flexsys America is an Ohio Corporation and subsidiary of a global company based in Belgium. Flexsys purchased a Public and Products Liability Policy from XL Capital Group, termed “Master Policy,” by the Court, and provided US$25 Million in coverage.  Flexsys was also insured under a XL Capital Group Commercial General Liability policy issued in Ohioand providing US$1 Million in coverage.

The plaintiff “KKPC” filed suit against Flexsys alleging that Flexsys engaged in …