FCL Fidelity Blog

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Sportsinsurance.com: Second Circuit applies Suit Limitation Period to Dismiss Action on Commercial Crime Policy

By Chris McKibbin and Devra Charney On November 4, 2022, the Second Circuit Court of Appeals released its decision in Sportsinsurance.com, Inc. v. The Hanover Insurance Company, Inc.  The Court applied a commercial crime policy’s suit limitation period in finding that an insured’s coverage action was not timely.  Critically, the Court also rejected the insured’s waiver and estoppel arguments which were premised on alleged communications by the insurer. The Facts In January 2016, Sportsinsurance.com, Inc. (“Sportsinsurance”) discovered that its Chief Financial Officer, Baroudi, was embezzling from the company.  Sportsinsurance believed that Baroudi’s embezzlement constituted a loss under the commercial

Hantz Financial Services: Sixth Circuit enforces Suit Limitation Provision in finding No Coverage under Financial Institution Bond

On November 9, 2016, the Sixth Circuit Court of Appeals released its decision in Hantz Financial Services, Inc. v. American International Specialty Lines Insurance Co., affirming the U.S. District Court for the Eastern District of Michigan’s grant of summary judgment in favour of National Union in a claim advanced on a Financial Institution Bond. As we discussed in our September 29, 2015 post, the District Court held that no coverage was available to the insured, Hantz Financial Services, Inc. (“Hantz”), for losses resulting from its employee’s perpetrating a fraud on its clients, as such losses were indirect. The District Court