Actual Safety for Actual Property Belongings: Courtroom Ruling Reinforces Significance of D&O Insurance coverage
In a latest shopper alert, Hunton Andrews Kurth LLP actual property lawyer Laurie Grasso and insurance coverage attorneys Geoffrey B. Fehling, Cary D. Steklof, and Evan J. Warshauer focus on the vital lesson actual property firms and their officers and administrators can take away from the Illinois federal district court docket’s choice in Outdated Guard Insurance coverage Firm v. Riverway Property Administration, LLC et al., No. 1:23-cv-01098 (C.D. Ailing. Sep. 6, 2024). The court docket discovered a business normal 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 throughout the insurance policies’ definition of prevalence, which required “an accident.”
The choice underscores the significance of sustaining administrators and officers legal responsibility insurance coverage to guard in opposition to 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 vital, ongoing authorized payments.
