This is the first in a series of discussions about insurance issues unique to the Lone Star State.
For nearly a century, the Stowers doctrine has been a critical cornerstone of Texas insurance law protecting insureds facing the threat of a nuclear verdict. This doctrine, named after the seminal 1929 case G.A. Stowers Furniture Co.
The foundation of a policyholder’s agreement to pay premiums for a standard commercial general liability policy (CGL) is the insurer’s agreement to defend the policyholder against lawsuits and shoulder the costs of the defense. The insurer has “the right and duty to defend any ‘suit’” containing any allegation that potentially falls within the policy’s coverage.
A recent Mississippi case reminds commercial and residential policyholders alike of the importance of updating insurance coverage when circumstances change to avoid a coverage dispute or the loss of coverage altogether. Commercial insureds should coordinate with stakeholders within their organizations to ensure prompt reporting of changing exposures to the personnel responsible for insuring risks. The