March 17, 2016

Bill Cosby: Got Insurance? He does and he's using it to pay for his legal defense.

An interesting sidebar to Bill Cosby's sordid mess of sexual assault, date rape, and defamation accusations.

Go Insurance?  Bill Cosby does, and he's using it to pay for legal expenses and possible damages in his pending defamation suits.  But not without his insurance company going to Court to try to get out of paying.

As reported recently in the New York Times, Bill Cosby and his wife have extra insurance coverage for personal injury tied to their homeowners' insurance policies; apparently $37 million dollars of coverage in total across 3 policies.  (That coverage would not be cheap to purchase.)  But hey, his insurance carrier American General Group (better known as AIG) likely thought Bill Cosby, formerly thought of as a true family man and crusader for good behavior, was a slam dunk risk.

Uh, not so fast.

Bill Cosby is now using the personal injury policies to pay for his legal costs associated with his pending defamation lawsuits, and to pay for any related damages that may result from settlement or trial.  His insurance carrier AIG subsequently took Mr. Cosby to court, claiming that the policies do not provide coverage for the allegations in the pending defamation lawsuits.


Insurance Company American International Group
says it should not have to pay for defense and possible
 damage expenses in Bill Cosby's defamation lawsuits. 

So far, the courts have sided with Bill Cosby and against AIG, but this litigation remains pending.

What do you think?

Interesting and worth a read.   Provides a reminder to insurance companies:  Don't have ambiguous language in your insurance policies.  If you do, courts hold in favor of the policyholder/insured and extending coverage.

I provide Consulting and Expert Witness Services for insurance matters, including those related to homeowners' insurance and personal injury and liability insurance coverage.  I welcome your call at (925) 979-9972 or email to Mary@FoutsFinancialGroup.com if you have concerns about insurance matters.

For information about my nationwide Consulting, Expert Witness, and Tax Services visit Fouts Financial Group.

Mary Rae Fouts

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