Actual Safety for Actual Property Belongings: Court docket Ruling Reinforces Significance of D&O Insurance coverage
In a current consumer alert, Hunton Andrews Kurth LLP actual property legal professional Laurie Grasso and insurance coverage attorneys Geoffrey B. Fehling, Cary D. Steklof, and Evan J. Warshauer talk about the vital lesson actual property firms and their officers and administrators can take away from the Illinois federal district court docket’s determination in Outdated Guard Insurance coverage Firm v. Riverway Property Administration, LLC et al., No. 1:23-cv-01098 (C.D. In poor health. Sep. 6, 2024). The court docket discovered a industrial basic legal responsibility insurer had no obligation to defend or indemnify a property administration firm or its proprietor in lawsuits that included allegations of intentional conduct, holding that the allegations didn’t fall inside the insurance policies’ definition of incidence, which required “an accident.”
The choice underscores the significance of sustaining administrators and officers legal responsibility insurance coverage to guard towards gaps in protection that would in any other case consequence from allegations of intentional, fraudulent, felony, or realizing conduct, doubtlessly leaving particular person insureds personally uncovered for important, ongoing authorized payments.
