Nevada Supreme Court Issues Advanced Opinion in Favor of Nevada Insureds

The Nevada Supreme Court issued an advanced opinion yesterday in the case of Century Surety Company v. Dana Andrew et al. The case involves an insurance company’s duty to defend and whether or not an insurer should be held responsible for all of the consequential damages if they fail to defend.

 

In this decision, the Nevada Supreme Court, en banc, unanimously held: “We conclude that an insurer’s liability where it breaches its contractual duty to defend is not capped at the policy limits plus the insured’s defense costs, and instead, an insurer may be held liable for any consequential damage caused by its breach. We further conclude that good faith determinations are irrelevant for determining damages upon a breach of its duty."

 

This advanced opinion positively impacts Nevada insureds who need to recover damages consequential to the insurer’s breach of its duty to defend.

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