“The insurance industry is watching very closely whether or not there will be large verdicts resulting from these early trials and, if so, whether it would lead to a litigation trend,” Goldberg Segalla’s Michael A. Hamilton said in an interview with Law360 about an uptick in human trafficking lawsuits and the resulting insurance coverage fights.

Human trafficking lawsuits have been called a “quiet risk” for insurers, as they raise insurance issues related to whether hotel owners and franchisors knew of criminal actions or failed to have proper measures in place to prevent trafficking activity on their properties. Mike, a leader in the firm’s Global Insurance Services group in Philadelphia, points out that some insurers have responded by adding specific trafficking exclusions and restrictions to policies, such as providing coverage exclusions or sublimits for certain types of losses. Meanwhile, insurance carriers are following the human trafficking suits as they move through the court system due to the potential for large verdicts.

READ THE FULL ARTICLE:

“Human Trafficking Brings Suits, Insurance Woes for Hotels,” Law360, August 31, 2021

MORE ABOUT GOLDBERG SEGALLA’S MICHAEL A. HAMILTON:

Michael A. Hamilton handles sophisticated and high-exposure insurance coverage claims and commercial litigation. As a leader for the firm’s Global Insurance Services Pennsylvania and Ohio teams, Mike focuses his practice on environmental, professional liability, construction defect, transportation, and business torts/advertising injury claims. He has been lead defense counsel in class action litigation, representing insurance companies, self-insurers, and transportation entities. He also has extensive appellate experience, arguing numerous appeals in state and federal courts across the country.