Editors’ Note: This article has been updated to reflect a Correction.

A hot topic in the insurance coverage arena is whether insurers have a duty to defend policyholders against lawsuits alleging violations of state consumer fraud and deceptive trade practices statutes. In recent years, a growing number of plaintiffs have brought such lawsuits against companies even when similar damages could be recovered under other theories of liability that may be easier to prove—because consumer fraud statutes frequently permit plaintiffs to recover their attorney’s fees in addition to damages. Because these consumer fraud statutes typically require plaintiffs to allege that their injuries were the result of intentional or knowing conduct, however, insurers often attempt to avoid any obligation to defend such lawsuits on the ground that their policies do not cover such intentional conduct. But just because a complaint alleges intentional conduct does not mean that any injuries flowing from that conduct were not accidental and, therefore, potentially covered by insurance.

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