Michael Weiss | Cozen O’Connor One of the most settled—but frequently litigated—principles in insurance law is that bad‑faith liability is derivative of coverage. In general, an insurer cannot be liable for bad faith where it did not owe coverage or benefits under the policy in the first place. Two recent federal decisions, applying Illinois and… Continue reading No Coverage, No Bad Faith: Majority of States Enforce the Threshold Requirement
Category: Insurance
Why AI Risk Needs Its Own Insurance Conversation
Kathryn Rattington | Robinson + Cole Many insurers, and the businesses they cover, are still treating artificial intelligence (AI) risk as if it were cyber risk cloaked in a costume. That instinct is understandable since AI systems process data, rely on vendors, create operational dependencies, and sit inside digital infrastructures. However, early litigation is showing… Continue reading Why AI Risk Needs Its Own Insurance Conversation
Collapse Coverage in First-Party Property Cases
Keegan Lathan | Butler Weihmuller Katz Craig What is considered a covered “collapse” under a homeowner’s policy? One Florida appeals court recently addressed this question in Escobar v. Citizens Prop. Ins. Corp., No. 3D24-1234, 2026 WL 817362 (Fla. Dist. Ct. App. Mar. 15, 2026). Specifically, the Third District Court of Appeal held that: (1) drywall is… Continue reading Collapse Coverage in First-Party Property Cases
AI Insurance Coverage: Are You Covered for the Risk?
Jeanine M. Donohue | Buchalter AI technology is evolving at extraordinary speed. Its promised benefits are remarkable — increased efficiency, enhanced analytics, automation, and innovation. But alongside those benefits come meaningful risks. And risk makes insurers nervous. Before implementing AI in your business operations, it is critical to review your insurance policies to determine whether… Continue reading AI Insurance Coverage: Are You Covered for the Risk?
Fourth Circuit Extends Coverage to Contractor, American Bar Association
Brittany E. De Vries and Geoffrey B. Fehling | Hunton The Fourth Circuit in APAC-Atlantic, Inc. v. Owners Insurance Co. recently endorsed expansive coverage for additional insureds, interpreting “arising out of” broadly under North Carolina law to extend coverage to a repaving company under its subcontractor’s commercial general liability insurance policy. The court held that an additional… Continue reading Fourth Circuit Extends Coverage to Contractor, American Bar Association