Insurance

Clients of Gibbons’s Insurance Coverage Team rely on our depth of experience and practical, up-to-date advice to achieve their objectives and resolve business-related insurance coverage disputes efficiently and effectively. We also assist clients in obtaining appropriate insurance coverage to optimally manage the myriad risks that may impact their business.

Our counsel spans a broad range of complex insurance claims:

• General liability claims for bodily injury and property damage
• Employment Practices liability claims
• Construction and construction defect liability claims
• D&O and fiduciary liability claims
• Bad faith and extra contractual liability
• Business interruption claims
• Cyber liability claims
• Errors and Omissions and other professional liability claims

Results may vary depending on your particular facts and legal circumstances.

Representative Matters

• Assisted a publicly traded diversified energy company with the resolution of insurance coverage and contractual indemnity disputes arising out of pending and anticipated (at the time) claims based upon an explosion of a gas line in Ewing, NJ. As a direct result of our initial work on the coverage issues, the client requested that we assist the company and propose revised contract language to strengthen and enhance the insurance provisions of its contractual agreements.
• Currently representing a global electronics manufacturer in connection with an insurance coverage dispute under an Employment Practices policy for proposed class action claims by an initial group of former employees alleging race and sex discrimination. We are finalizing and implementing the terms of the agreement as to the insurer’s contribution to settlement with the claimants.
• Currently representing a global chemical products manufacturer in an environmental insurance coverage matter arising out of liabilities associated with a site located in central New Jersey. After extended settlement negotiations directly with representatives for the five primary insurers with triggered policies, as well as several mediation sessions with these individual insurers, the client agreed to final settlements with all insurers that in the aggregate represents more than 80 percent of the total defense and remediation costs paid and to be paid by the client.
• Regularly provide counseling and advice to a regional construction company on a broad range of insurance coverage and indemnification issues including third-party claims based on construction defects, subcontractor liability, employment discrimination, personal injury, and property damage
• Regularly provide counseling and advice to a local educational institution – including the General Counsel’s office, other personnel at the institution, and outside consultants – on a variety of insurance coverage issues, including recent claims relating to and arising out of allegations of misconduct by former employees and other individuals affiliated with the institution
• Regularly provide insurance coverage counseling and advice to a state agency on numerous insurance coverage matters relating to construction activities and ongoing operations at various facilities
• After being retained as coverage counsel for a waste management company for purposes of an appeal, we obtained reversal of the trial court’s summary judgment order against our client that would have resulted in its liability for a bodily injury/wrongful death claim well in excess of $2 million dollars on a self-funded liability policy. After remand to the trial court and further hearings on damages, the client’s total liability was capped at approximately $300,000.
• Provided counseling and advice to our financial services client in order to obtain insurance coverage after an initial denial by the insurers for claims relating to a regulatory investigation and civil litigation. We successfully negotiated with the insurers (and their counsel) from the London insurance market to obtain (1) funding for the settlement of a class action pending in the SDNY, (2) reimbursement of defense costs in that litigation, and (3) reimbursement of costs associated with a separate investigation by the CFTC. The aggregate value of these three claims is approximately $30 million.
• Represented a national steel and wire manufacturing company in an environmental insurance coverage dispute relating to numerous sites across the country. The relevant insurers had denied coverage for several reasons based on policy terms as well as New Jersey allocation principles. After extensive discovery and motion practice, the client and its insurers agreed to meditation, which ultimately resulted in “coverage in place” agreements with each of the insurer defendants.
• Successfully mediated the resolution of a construction defect claim against a condominium association’s insurer following the initial denial of the claim under applicable policies. Although the client had been advised by its broker and other “experts” that “no coverage exists for this claim,” we were able to achieve a multimillion-dollar settlement after several extended mediation sessions.
• Concluded a settlement for our financial services client with its London-based insurer on a claim arising out of fraudulent activity by one of the client’s former brokers. In addition to negotiating a settlement of the claim, we identified a variety of issues relating to currency exchange rates and timing for valuing the loss covered under the policy, which enabled the client to realize approximately $300,000 of additional value from the final settlement.
• • Commenced an insurance coverage action on behalf of our client against a leading insurance and reinsurance marketplace to obtain coverage for a property damage/general liability claim. After briefing and arguing our summary judgment motion seeking a declaration of coverage, the leading insurance and reinsurance marketplace voluntarily agreed to fund a settlement of the underlying property damage claim without any contribution from the client. In addition, a portion of the funds paid by the leading insurance and reinsurance marketplace was allocated as a partial reimbursement of the client’s attorneys’ fees for filing the coverage action.
• Retained to represent a regional real estate management company to negotiate the resolution of a general liability claim for which neither the client nor the broker’s attorneys and representatives (at a well-known international broker) were able to obtain any coverage for an extended period. After we were retained, we re-engaged in negotiations and obtained a settlement with the insurer that required payment of a substantial portion of the total liability of the client for both defense costs and indemnity payments in connection with the underlying claim.
• Obtained a very favorable resolution of two separate insurance coverage disputes for our financial services client under a D&O/EPL policy, where the insurer maintained that there was no coverage at the time the claim was submitted. The settlements required the insurer to pay the majority of total liability for defense and indemnification for each claim.
• Represent an international chemical manufacturing company in a multiyear insurance coverage litigation with its insurers seeking reimbursement of approximately $25 million for environmental remediation costs for various sites across the United States. All coverage issues were ultimately and successfully resolved in mediation.
• Commenced a malpractice action on behalf of a regional publishing company against its insurance broker for failure to advise of coverage-defeating terms and conditions included in a renewal policy that ultimately enabled the insurer to deny coverage for a claim otherwise covered in the absence of the new exclusion. We negotiated a favorable settlement after initial discovery and preliminary motion practice.
• Successfully negotiated the settlement of a disputed Directors and Officers liability claim made by the client – a regional diagnostic imaging group – arising out of a shareholder dispute alleging mismanagement and fraud
• Obtained a dismissal with prejudice and in the entirety for the director of several reinsurance entities named as a defendant in an action commenced in the Delaware Court of Chancery by the Delaware Commissioner of Insurance for breach of fiduciary duty and fraud