Connecticut Supreme Court Stands with Policy Holders by Expanding Duty to Defend

The Connecticut Supreme Court decision in Nash St. LLC v. Main Street America Assurance Company, No. SC20389 (Conn. Sept. 9, 2020) increased the pressure on insurance carriers in that state when determining whether they have a duty to defend an insured. The Court expanded the duty to defend to situations where there is “no controlling Connecticut appellate authority interpreting the meaning and applicability of the policy exclusion.” Should an insurance carrier wrongfully breach its duty to defend, it also risks losing its coverage defenses which may result in the insurer paying for claims not otherwise covered by the policy. Insurers in that state should consider how Nash might affect their case when there’s legal uncertainty about its duty to defend. Read a summary of the case and its potential impact here.