No Coverage for Defense of Indemnity of Suit Arising Out of Liability Under any Contract or Any Breach of Contract

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Ninth Circuit Concludes Breach of Contract Exclusion is Enforceable

Read the full article at https://www.linkedin.com/pulse/ninth-circuit-concludes-breach-contract-exclusion-zalma-esq-cfe and at https://zalma.com/blog plus more than 3450 posts.

Courts dealing with insurance issues often issue opinions that are lengthy and convoluted before getting to the point. In Office Depot, Inc. v. AIG Specialty Insurance Company, FKA American International Specialty Lines Insurance Company, No. 19-55819, United States Court Of Appeals For The Ninth Circuit (November 13, 2020) the Ninth Circuit Court of Appeal changed the process by issuing a clear, concise and easy to understand opinion.
ZALMA OPINION

Insurance, by definition, provides coverage only for property damage or bodily injury resulting from a contingent or unknown event. Contract damages are excluded, as part of the insuring agreement and specific exclusions, since they do not cause property damage, bodily injury or the Personal Injury offenses, just contract damages. Contract damages, for breach, are a cost of doing business and simply – as the Ninth Circuit found – cannot, and should never, be insured.

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