Debunk a Myth: Defense Costs For Many Consumer Class Actions Covered by General Liability Insurance

Every year, corporations spend hundreds of millions of dollars defending consumer class actions under the mistaken belief that such cases fall outside their liability insurance coverage.  The rationale given by insurers in denying coverage for such actions is that there is no allegation of property damage or bodily because class actions must be based upon issues common to all class members, such as breach of warranty or violations of consumer protection statutes.  This program will address the insurer’s broad duty to defend, the arguments that can be made that general liability policies provide defense coverage for many consumer class actions and should contribute to settlements, and the approach the courts have taken to these issues.