Bulletins by Practice Area

Insurance Coverage

What is an Accident? The standard commercial general liability insurance policy provides coverage for bodily injury or property damage caused by an "occurrence." The term "occurrence" is defined as "an accident, including continuous or repeated exposure to substantially the same general harmful condition." In the recent case of AES Corp. v. Steadfast Ins. Co., ___ Va. ___, ___ S.E.2d ___, 2011 WL 4139736 (2011), the Virginia Supreme Court addressed the meaning of "accident" and provided guidance, and possible fodder, for future litigation.

Intra-Policy UM/UIM Stacking - Recent Developments. For details on a recent opinion by Judge Spencer.

Intra-Policy UM/UIM Stacking - Unambiguous Anti-Stacking Language. Until a year ago, the law on stacking uninsured and underinsured motorist coverages under a single policy insuring several vehicles was clear.

Chinese Drywall: No Coverage Under Homeowners Policy. In the first case of its kind, Judge Doumar of the United States District Court for the Eastern District of Virginia rejected a claim that coverage was afforded under a homeowners policy for losses associated with Chinese drywall. TRAVCO v. Ward, ___ F. Supp. 2d ___, 2010 WL 2222255 (E.D. Va. 2010). Judge Doumar's opinion is relatively extensive and detailed. The extent to which it will influence other courts remains to be seen but it will at least provide counsel for insurers with a useful framework for opposing first-party claims for coverage based on damage caused by Chinese drywall.

Duty to Defend: Virginia Supreme Court Rejects Strict Eight Corners Approach. The general rule under Virginia law is that an insurer's duty to defend arises when the complaint alleges facts and circumstances, some of which, if proved, fall within the risk covered by the Policy, Courts have often described this as an "eight corners" rule, which confines the inquiry concerning duty to defend to the policy language and the allegations of the complaint; evidence outside the eight corners of these documents may not be considered. The Supreme Court of Virginia.

Supreme Court allows late filing based on defendants knowledge.

Harman Claytor Corrigan & Wellman is pleased to announce that, on April 15, 2010, the Virginia Supreme Court rendered a decision regarding the question of whether a police officer and a suspect were "using" their motor vehicles for purposes of automobile insurance coverage.

Virginia UIM Insurers Obligated to Assume Cost of Defense - A statutory amendment that will take effect on July 1, 2010, will impose a new and potentially substantial burden on insurers that provide underinsured motorist (UIM) coverage especially in cases where liability is clear and the damages exceed the limit of underlying liability coverage.