A decision by the U.S. District Court for the District of
Minnesota, applying Minnesota law, highlights complications that
can arise when a single claim triggers multiple coverages under the
same policy.
In Illinois Casualty Co. v. Kladek Inc., the court held on July
23 that the insurer had a duty to defend a lawsuit alleging
personal and advertising injury under both the cyber protection
coverage and the general liability coverage of the insurer's
businessowners policy.
Background
Several models sued the insured, a gentleman's club,
alleging that their images were used in advertisements on the
insured's social media accounts without their consent. The
insured sought coverage for the suit under two sections of its
businessowners policy: the cyber protection coverage and the
general liability coverage. The insurer denied coverage under both
insuring agreements.
