Don’t Believe the Hype: Over-Touting One’s Own Products Triggers Non-Conformity Exclusion

A Virginia federal court rendered an important decision on product disparagement coverage, holding that a policy’s Non-Conformity Exclusion barred coverage for the underlying false advertising claim. In Selective Way Insurance Co. v. Crawl Space Door System, Inc., the United States District Court for the Eastern District of Virginia was confronted with the question of whether there was coverage for a suit between two competing vent vendors, Crawl Space Door System, Inc. (CSD) and Smart Vent Products. Smart Vent had sued CSD. It alleged CSD …

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