Bad Faith lawyers who handle commercial policy claims will want to read this 2023 case. This case is from the Southern District of Texas, Corpus Christi Division. It is styled, Laguna Enterprises, LLC v. Westchester Surplus Lines Insurance Company, et al.
A big difference between commercial policies and the policies covering a normal person who has a homeowners or auto is that the commercial policies will have a greater number of exclusions and limitations to coverage and conditions that have to be satisfied for coverage to apply. That is the situation in this case.
Plaintiff’s proper was insured through Westchester. Plaintiff suffered a fire loss and Plaintiff made a claim for benefits. Westchester denied the claim because the property lacked smoke detectors as required by the policy. Plaintiff sued for violations of the Texas Insurance Code and breach of contract. Westchester filed a motion for summary judgement based on the facts of the case and the policy language.