On Friday, August 9th, an Indiana Court of Appeals reversed a trial court’s ruling and allowed an insureds’ claim for bad faith based on misrepresentations in the insurer’s quote for coverage to proceed to trial.
Metal Pro Roofing, LLC v. Cincinnati Insurance Company, No. 18A-PL-2205, 2019 WL 3756738 (Ind. Ct. App. Aug. 9, 2019) involved a declaratory judgment action brought by the insurer against two insured LLCs after it refused to cover more than $78,000 stolen from the LLC’s bank accounts by computer hackers. The LLCs countered for breach of contract and bad faith against Cincinnati. In particular, the LLCs’ bad faith claim alleged that Cincinnati deceived the LLCs into purchasing the coverage by misrepresenting that the coverage would “protect insured business clients from someone hacking into computers and into their bank accounts to steal money.”
Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth and Adriana A. Perez, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
Ms. Perez may be contacted at aperez@HuntonAK.com