The Seventh Circuit Court of Appeals ruled that an insurer did not act in bad faith in denying a claim for vandalism in Backwater Incorporated v. Penn-American Ins. Co., No. 05-2805, 2006 WL 1409427 (7th Cir. May 24, 2006).

 

A nightclub called Finke's, owned by Ruth and William Finke through their company, Backwater, Inc., suffered extensive vandalism damage. They filed a claim with their property insurer, Penn-American. Following an investigation, Penn-American concluded that the vandalism was an inside job and denied coverage for the claim.

This premium content is locked for FC&S Coverage Interpretation Subscribers

Enjoy unlimited access to the trusted solution for successful interpretation and analyses of complex insurance policies.

  • Quality content from industry experts with over 60 years insurance experience, combined
  • Customizable alerts of changes in relevant policies and trends
  • Search and navigate Q&As to find answers to your specific questions
  • Filter by article, discussion, analysis and more to find the exact information you’re looking for
  • Continually updated to bring you the latest reports, trending topics, and coverage analysis