Indiana Court of Appeals Finds That Insured’s Violation of a Pre-Loss Policy Condition Barred Coverage Regardless of Prejudice to the Insurer
Garbin Street Warehouse, LLC v. Bridgeway Insurance Co., 2026 Ind. App. LEXIS 240 (Ind. Ct. App. 2026) A warehouse owner insured its warehouse through a primary insurer and several excess insurers. The insured’s policies included a Protective Safeguard Endorsement that included the following notice condition: If part of an Automatic Sprinkler System… is shut […]
Indiana Supreme Court Recognizes Interpleader “Safe Harbor” for Insurers Confronted by Multiple Claims That Exceed Liability Policy Limits
Baldwin v. Standard Fire Ins. Co., 2025 Ind. LEXIS 680 (Ind. 2025) The Indiana Supreme Court recently provided crucial guidance for insurers facing multiple claims that exceed available liability policy limits. The Indiana Supreme Court described the predicament that insurers encounter in these situations: When insurance coverage is insufficient to satisfy multiple claimants, […]
Indiana Court of Appeals Applies Bailee Coverage Statute to Determine Priority of Underinsured Motorist Coverage
Erie Ins. Exch. v. State Farm Mut. Auto. Ins. Co., 2025 Ind. App. LEXIS 211 (Ct. App. June 30, 2025) When a single loss may trigger coverage under more than one policy, the key question often becomes: which insurer is first in line? That familiar dispute played out again in Erie Ins. Exch. v. State […]
Court Finds Issue of Fact Whether Insurer Acted in Bad Faith by Interpleading Its Policy Limit Rather Than Paying Claimant’s Settlement Demand
Baldwin v. Standard Fire Ins. Co 2024 WL 3093500 (Ind. 2024) Insurers have long viewed interpleader as the go-to strategy and a safe harbor for avoiding accusations of bad faith when dealing with multiple liability claims exceeding policy limits. However, a recent decision from the Indiana Court of Appeals suggests that insurers may need to […]
Indiana Supreme Court Reverses Directed Verdict for Insurer on Breach of Contract and Bad Faith Claims
Cosme v. Clark 2024 WL 1987694 (Ind. 2024) Last month, the Indiana Supreme Court issued a decision holding that, “at the directed-verdict stage, the court can review whether inferences from the evidence are reasonable, but it cannot weigh conflicting evidence or assess witness credibility.” This newsletter discusses the Court’s decision only as it relates to […]
Indiana Court of Appeals Applies “Dishonest Act” and “Unexplained Disappearance” Exclusions in Employer’s Claim That Former Employee Stole Missing Tools
Williams v. Pekin Ins., Inc. 2024 WL 901885 (Ind. Ct. App. 2024) A contractor entrusted tools to its employee but demanded their return when his employment ended. When the employee failed to do so, the contractor reported the tools as stolen and sued the former employee for replevin. The former employee returned some tools, but […]
Court of Appeals Affirms Judgment for Insurer That COVID-19 Caused No Direct Physical Loss or Damage to College Campus
Trustees of Purdue Univ. v. Am. Home Assurance Co. 2024 WL 822503 (Ind. Ct. App. 2024) Does an insurance policy that covers “all risks of direct physical loss” to property provide broader coverage than a policy that only covers “direct physical loss” to property? The Indiana Court of Appeals recently answered that question in the […]
Seventh Circuit Issues Another Opinion Holding That Property Insurance Does Not Cover Loss of Income From COVID-19 Lockdown Orders
Stant USA Corp. v. Factory Mut. Ins. Co. 2023 WL 2326096 (7th Cir. 2023) In a continuing string of appellate decisions, the Seventh Circuit Court of Appeals affirmed a district court’s decision holding that an insured company’s loss of business income due to suspension of operations during the COVID pandemic was not a covered loss […]
Seventh Circuit Enforces Policy’s Requirement That Insured Notify Insurer of Impairment to Sprinkler System to Retain Coverage for Fire Loss
Frankenmuth Mut. Ins. Co. v. Fun F/X II, Inc. 2023 WL 2256750 (7th Cir. 2023) The insured owned a costume and theatrical supply company, which stored its inventory in a warehouse. At the time of purchase, the warehouse had a functional sprinkler system with a working water supply. The insured hired an outside contractor to […]
Indiana Court of Appeals Rules Insurance Policy’s Lead Exclusion Unambiguously Barred Coverage
Indiana Farmers Mut. Ins. Co. v. HomeWorks Management Corp., 2022 WL 17825975 (Ind. Ct. App. 2022) Parents claimed their children suffered respiratory problems because of lead-based paint and dust in the home they rented. The parents filed a lawsuit against the management company and owners of the rental home. The owners submitted a claim to […]