ADVERTISEMENT
ADVERTISEMENT
Insurer Says It Lost $3M Because RSM Audit Missed Fraud
Law360 (February 5, 2021, 9:36 PM EST) Philadelphia Indemnity Insurance Co. says in an Illinois state court suit that consulting firm RSM US LLP should be on the hook after the insurer paid $3 million to cover damages its insured incurred after RSM failed to detect management-level fraud during an audit.
The insurer claims in a suit filed Wednesday that RSM s failure to conduct a proper probe of Insureon Holdings LLC s financial records caused the insurance company to later pay out the $3 million policy limits under its insured s fidelity and employee theft insurance policy.
California court declines to dismiss Goodwill's COVID-19 suit businessinsurance.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from businessinsurance.com Daily Mail and Mail on Sunday newspapers.
Shares1
Almost 1,500 lawsuits have been filed by policyholders against insurers, seeking to resolve disputes around insurance coverage for COVID-19-related business losses.
For those unfamiliar with insurance litigation trends, it’s important to put the scale of this into perspective. The average hurricane will result in about 50 to 100 cases being filed in the first year; from April till August 2020 we saw the same quantity of cases being filed
each week for COVID-19-related losses.
So far, rulings have been made overwhelming in the favor of insurers, at a rate of approximately 75%. However, there have been some significant rulings in favor of policyholders over the last few months which should cause insurers pause for thought.
ADVERTISEMENT
ADVERTISEMENT
Supreme Court Won t Hear Hotel Group s Coverage Suit
Law360 (January 11, 2021, 10:10 PM EST) The U.S. Supreme Court has declined to hear a Pennsylvania-based insurance company s challenge to a recent Montana high court ruling that a hotel group s dispute with the insurer over coverage for a proposed employment class action can be litigated in Montana.
The high court on Monday denied the petition for a writ of certiorari filed by Philadelphia Indemnity Insurance Co. in the proposed class action originally brought by Gateway Hospitality Group Inc., a hotel group that manages four Hilton Garden Inn hotels in Montana.