A recent $44 million jury award against a policyholder of AIG unit Lexington Insurance Co. underscores the dilemma that insurance companies face when their policies cover an insured found to be responsible for the actions that led to the litigation, according to an article about the case published by insurance industry publication AM Best. In the case, the jury awarded compensatory and punitive damages to an Ohio bakery against Oberlin College, which purchased a commercial umbrella liability policy from Lexington. In the article about the verdict, Freeborn Insurance and Reinsurance Industry Team partners Robert M. Baratta Jr. and Lawrence P. Ingram offer legal analysis, as well as suggestions of best practices for carriers immediately following the filing of a claim. Mr. Baratta and Mr. Ingram were interviewed for the AM Best article, “Jury’s $44 Million Libel Award Against AIG Unit Raises Troubling Questions for Insurers, Observers Say,” published June 28, 2019.
To read the article, click here.