Scott Seaman Discusses Sixth Circuit Ruling That Insurers Have No Duty to Defend in Opioid Coverage Suit

Scott Seaman—Chicago-based partner and co-chair of Hinshaw's global Insurance Services Practice Group—discussed with Law360 Insurance Authority the Sixth Circuit's recent ruling that damages sustained by governments in three suits were not “because of” bodily injury, but rather economic losses that are not covered by insurance.

Seaman stated that the decision is a significant addition to the body of case law on coverage for opioid-related cases. He added that the ruling is important since few federal appeals courts have addressed the issue.

Seaman also noted that the nationwide dispute over coverage for governments seeking to recover the costs incurred from responding to the opioid epidemic has reached its boiling point, with thousands of state and local governmental entities seeking to recover costs of public services associated with opioids from drug manufacturers and distributors.

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"6th Circ. Ruling Deepens Opioid Coverage Split" was published by Law360 on January 18, 2023.