In Embroidme.Com, Inc. v. Travelers Prop. Cas. Co. of Am ., 2014 U.S. Dist. LEXIS 7715 (S.D. Fla. Jan. 23, 2014) (Marra, J.), the United States District Court for the Southern District of Florida considered an insurer’s obligation to reimburse its insured for pre-tender defense costs under Florida law and whether its letter disclaiming such costs is governed by Florida Claims Administration Statute, Fla. Stat. § 627.426(2). The facts are as follows: Travelers insured Embroidme.com under a general liability policy with web site injury protection. Embroidme.com was named as a defendant in an underlying copyright infringement lawsuit in April 2010. On June 28, 2010, Embroidme.com retained counsel to defend it in the lawsuit. However Embroidme.com did not tender the suit to Travelers until October 2011. Travelers subsequently agreed to provide its insured with a defense, but disclaimed any coverage obligation with respect to Embroidme.com’s pre-t...
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