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 […]
“No Pay, No Play” Statute Bars Uninsured Motorist From Recovering Noneconomic Damages From At-Fault Motorist
Jones v. Lofton 2022 WL 17840259 (Ind. Ct. App. 2022) Indiana is one of a minority of states that has enacted what is commonly called a “No Pay, No Play” statute. Indiana’s version of the statute (which is, in fact, two statutes) bars “an uninsured motorist with a previous violation” of failing to provide proof […]
Court of Appeals Holds That Subcontractor’s Insurer Had Duty to Defend but Not Indemnify General Contractor
Scottsdale Ins. Co. v. Harsco Corp. 2022 WL 17087036 (Ind. Ct. App. 2022) Harsco Corporation (“Harsco”) contracted with PPL Montour Company (“PPL”) to build and maintain an elevator at a PPL worksite in Pennsylvania. Harsco subcontracted with Metro Elevator Company (“Metro”) to lease and install the elevator. Consistent with the subcontract, Metro’s commercial general liability […]
Indiana Federal Court Holds That “Professional Services” Exclusion Did Not Relieve Insurer of Duty to Defend Landfill Against Nuisance and Negligence Claims
Savers Prop. & Cas. Ins. Co. v. Rockhill Ins. Co. 2022 WL 9461874 (S.D. Ind. 2022) In Savers Prop. & Cas. Ins. Co. v. Rockhill Ins. Co., county residents sued a nearby landfill, claiming they and their properties were being harmed by noxious odors, pollutants, and contaminants originating from the landfill. The landfill sought coverage […]
Seventh Circuit Holds Insurer Did Not Breach Policy or Act in Bad Faith By Treating Rather Than Euthanizing Show Horse
Greenbank v. Great Am. Assurance Co., 2022 WL 3754722 (7th Cir. 2022) Julie Greenbank purchased an athletic show horse named Thomas. Greenbank obtained a mortality insurance policy from Great American Assurance Company that provided coverage in the event of Thomas’ death or his “authorized humane destruction.” The policy defined “authorized humane destruction” as “the intentional […]
Seventh Circuit Court of Appeals Affirms Indiana District Court Finding No Coverage for COVID-19 Business Interruption Claims
Circle Block Partners v. Fireman’s Fund Ins. Co. 2022 WL 3401535 (7th Cir. 2022) The Seventh Circuit Federal Court has weighed in on whether business owners’ claims for business interruption losses from the COVID-19 pandemic are covered under business policies. The owners of the Conrad Hotel in Indianapolis submitted a claim to its insurer seeking […]
