Not sure what state you are from but in the northeast states, (NY, NJ, CT, MA, PA), my clients are worried about being sued and having to pay for defense themselves, and as long as you do not have a communicable disease exclusion or other of that type of exclusion (and yes, I agree that some claims people will try to use not only the pollution exclusion but also the fungi and bacteria exclusion, but there are very good arguments not only for defense but for coverage as well on those) and the insured meets those other hurdles you discussed, (not intentional) the CGL should at least respond for defense. We can only hope that insurance companies do not crumble, as they usually do, and just settle, rather than going to court.
Steps:
1. Claim/Suit filed.
2. Insurance carrier employs coverage counsel
3. Based on coverage counsel’s opinion, either denies coverage, denies coverage and files declaratory action to determine coverage, or accepts defense while issuing reservation of rights pending investigation of facts.
4. Insured, if financially able, or at insurers expense, employs counsel to file declaratory action, or respond to declaratory action filed by the insurer.
Very few liability claims of this type are clear when first received and require a lengthy period of time to investigate coverage. Woe to the insurance carrier eager to deny coverage walking away prematurely and opening themselves up to “bad faith”, which looms just around the corner.
My condo community in NJ has a board of directors that are scared to death of being sued for covid. If our community gets sued, they (and also owners) are personally responsible for defense, at least.
What advice do you have for our board members who refuse to open our pool for the second season in a row?
Not sure what state you are from but in the northeast states, (NY, NJ, CT, MA, PA), my clients are worried about being sued and having to pay for defense themselves, and as long as you do not have a communicable disease exclusion or other of that type of exclusion (and yes, I agree that some claims people will try to use not only the pollution exclusion but also the fungi and bacteria exclusion, but there are very good arguments not only for defense but for coverage as well on those) and the insured meets those other hurdles you discussed, (not intentional) the CGL should at least respond for defense. We can only hope that insurance companies do not crumble, as they usually do, and just settle, rather than going to court.
Steps:
1. Claim/Suit filed.
2. Insurance carrier employs coverage counsel
3. Based on coverage counsel’s opinion, either denies coverage, denies coverage and files declaratory action to determine coverage, or accepts defense while issuing reservation of rights pending investigation of facts.
4. Insured, if financially able, or at insurers expense, employs counsel to file declaratory action, or respond to declaratory action filed by the insurer.
Very few liability claims of this type are clear when first received and require a lengthy period of time to investigate coverage. Woe to the insurance carrier eager to deny coverage walking away prematurely and opening themselves up to “bad faith”, which looms just around the corner.
My condo community in NJ has a board of directors that are scared to death of being sued for covid. If our community gets sued, they (and also owners) are personally responsible for defense, at least.
What advice do you have for our board members who refuse to open our pool for the second season in a row?