Take a look at this piece we came across involving recent developments in Bill Cosby’s ongoing defamation lawsuits. In an effort to avoid personal financial liability, Cosby petitioned the court to allow him to use a personal umbrella policy to pay his legal fees and any judgments in the pending defamation lawsuits against him. Personal umbrella policies are typically made in excess of a homeowner’s insurance policy and cover liabilities that a homeowner’s insurance policy does not. Cosby holds an umbrella policy through AIG totaling $35 million.
Not surprisingly, AIG disputes that it should have to pay per the personal liabilities exclusionary provision of the policy. However, a federal judge in California ruled against AIG last November. The court held that the exclusion for personal liabilities provision in the policy did not apply because the subject matter of the defamation lawsuit is Cosby’s statements and NOT his alleged sexual misconduct. It’s interesting to note that former president Bill Clinton successfully used a similar umbrella policy to pay the legal bills stemming from the sexual harassment and defamation lawsuits filed against him by Paula Jones.
We will keep you posted on the court’s future rulings, as AIG plans to file an appeal. In the meantime, what are your thoughts?
Click here to read the ABA piece on this !
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