Insurer does not have to pursue insured’s counterclaim in subrogated action

By Patrick Bracher (ZA) on May 17, 2015 Posted in Insurance

A Massachusetts USA court held that the insurer did not have to prosecute counterclaims against a former vice president of the insured company who was suing for wrongful termination in an action defended by the insurers in terms of the policy. The court held that the policy only required the defence of claims made against … Continue reading

Insurer’s duty to defend – US judgment

By Patrick Bracher (ZA) on May 13, 2015 Posted in Insurance

An Illinois appeals court ruled that an insurer had a duty to defend toxic tort lawsuits brought against its insured even though the claims contained vague, ambiguous allegations which did not necessarily bring the claim within the policy coverage. The court reiterated the principle that an insurer’s duty to defend arises when the claim alleges … Continue reading

Reinsurer’s liability and included defence costs

By Patrick Bracher (ZA) on January 28, 2015 Posted in Insurance

The English court of appeal has reminded us of two insurance principles that are worth remembering: If there is no “follow the settlements” clause in a reinsurance policy, in order to trigger liability the insured must establish that it is, as a matter of law, liable to the third party claimant and that the loss … Continue reading