News & Analysis as of

D&O Insurance

K&L Gates LLP

Delaware Delivers Another “Bump-Up Exclusion” Win to D&O Policyholders

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Earlier this year, the Delaware Supreme Court delivered the latest win for policyholders in a string of battles regarding so-called “Bump-Up Exclusions” in directors and officers (D&O) liability insurance policies. The ruling...more

Wiley Rein LLP

New Jersey Supreme Court Enforces Capacity Exclusion and Refuses to Find Waiver or Estoppel Based on Reservations of Rights

Wiley Rein LLP on

The New Jersey Supreme Court, applying New Jersey law, has held that a capacity exclusion in a D&O policy barred coverage for claims asserted in two underlying actions alleging that a director of a pharmaceutical company...more

Nossaman LLP

Delaware Court Enforces D&O Coverage for SEC Disgorgement Settlement

Nossaman LLP on

Delaware remains one of the most important jurisdictions for corporate America, so pro-policyholder D&O decisions from Delaware courts are worth watching closely....more

Davies Ward Phillips & Vineberg LLP

Directors Who Defraud: Court of Appeal for Ontario Confirms Standalone Personal Liability for Civil Fraud

In a recent decision, the Court of Appeal for Ontario confirmed that the civil fraud of a corporate director or officer can lead to personal liability, even without having to pierce the corporate veil, irrespective of whether...more

Kennedys

New Jersey Supreme Court enforces "Capacity Exclusion" and rejects Estoppel arguments

Kennedys on

On May 11, 2026, the New Jersey Supreme Court decided that an insurer did not forfeit its right to disclaim defense and indemnity coverage based upon a “Capacity Exclusion” in a D&O policy. Mist Pharmaceuticals, LLC v....more

Wiley Rein LLP

Interrelated Wrongful Act Provisions Do Not Create Coverage for Uncovered Claims

Wiley Rein LLP on

The U.S. District Court for the Western District of Washington, applying Washington law, has held that a D&O insurer had no duty to pay defense costs for an arbitration asserting solely excluded contractual claims even though...more

King & Spalding

Georgia Modernizes Corporate Code: Key Updates to Business Court Access and Shareholder Disputes

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Georgia has enacted HB 1185, which updates the corporate governance and litigation framework applicable to Georgia companies. The legislation is effective July 1, 2026, and applies to claims or proceedings initiated on or...more

Cozen O'Connor

Insurer’s Reservation of Rights Protects its Ability to Withdraw from Insured’s Defense under New Jersey Law

Cozen O'Connor on

The New Jersey Supreme Court recently upheld an insurer’s coverage denial and withdrawal from the insured’s defense because the insurer properly and timely reserved its rights. Mist Pharmaceuticals, LLC v. Berkley Insurance...more

Morrison & Foerster LLP

Red Flags Everywhere! – Ten Risks for Directors – Week 10

Each week for the next 10 weeks, we will publish an installment of our Red Flags Everywhere! series, highlighting key risk areas that public companies and their board of directors should keep top of mind. This series...more

Morgan Lewis

Insurance Coverage Considerations for False Claims Act Investigations and Settlements

Morgan Lewis on

Over the last year, beyond traditional healthcare and federal procurement matters, the government has pursued federal False Claims Act (FCA) investigations and enforcement across high-risk areas, including diversity, equity,...more

Carey Olsen

Duties of company directors under Bermuda law

Carey Olsen on

The directors of a Bermuda company owe certain duties to their company when fulfilling their responsibility to oversee the management of the company. That includes both fiduciary duties which are rooted in honesty and loyalty...more

Lathrop GPM

The AI Coverage Gap: What New Insurance Exclusions Mean for Your Business

Lathrop GPM on

As companies increasingly integrate artificial intelligence (AI) – particularly generative AI – into day-to-day business operations, insurance carriers are moving quickly to limit their exposure. Several carriers have already...more

Ropers Majeski

I Scream, You Scream, We All Scream for D&O Insurance: An Analysis of the Blue Bell Creameries Litigation

Ropers Majeski on

In 2015, Texas-based ice cream darling Blue Bell Creameries was forced to implement a nationwide recall of its products after a mass Listeria outbreak. Indeed, the fallout was severe: a hefty DOJ fine of $19.35 million, the...more

Nossaman LLP

Delaware Court Preserves Coverage Under Target Company’s D&O Policy After De-SPAC Merger

Nossaman LLP on

In View Operating v. Starstone, No. N25C-08-064 SKR CCLD, 2026 WL 895939 (Del. Super. Ct. Mar. 30, 2026), a Delaware court applied the well-established rule that exclusions be interpreted narrowly and strictly against the...more

Wiley Rein LLP

Insured Cannot Avoid Exclusion Inadvertently Removed from CGL Policy Where It Knew the Removal Was a Mistake, but Court Finds...

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The United States District Court for the Western District of Washington has held that, where the insured knew prior to purchasing a CGL policy that it would include a certain exclusion, and the insurer accidentally removed...more

Wiley Rein LLP

Contract Exclusion Does Not Apply to Claim of Tortious Interference with Third-Party Contract

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The United States District Court for the Northern District of Illinois, applying Illinois law, held that a contract exclusion did not bar coverage for a claim for tortious interference with contract because the insured’s...more

A&O Shearman

Delaware Supreme Court Affirms That Bump-Up Exclusion In D&O Insurance Does Not Apply To Securities Claims Arising Out Of An M&A...

A&O Shearman on

On January 27, 2026, in an opinion authored by Justice Valihura, the Supreme Court of Delaware affirmed a decision by the Delaware Superior Court granting a plaintiff company’s motion for summary judgment against its insurers...more

Ward and Smith, P.A.

The Insurance Implications of AI in Your Business: Is Your Current Coverage Keeping Up?

Ward and Smith, P.A. on

Artificial intelligence is no longer a future consideration for business owners. It is a present reality. Businesses across every industry in North Carolina and beyond are deploying AI tools for customer service, data...more

Pillsbury - Policyholder Pulse blog

AI Exclusions in Insurance Policies: Broad Language, Uncertain Impact

As generative artificial intelligence (gen AI) becomes embedded in day-to-day commercial operations across virtually every sector, businesses are confronting a parallel rise in litigation and regulatory risk tied to AI...more

Wiley Rein LLP

Claims Arising Out of Securities Issued by Pre-Acquisition Target Do Not Constitute Securities Claims

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A federal district court applying Maryland law held that claims arising out of securities issued by a company to an insured, prior to its acquisition by the insured, were not “Securities Claims” because the company was not a...more

Jones Day

“A-Eye” on Coverage: Maximizing Insurance for AI Risks Amid Emerging Exclusions

Jones Day on

Artificial intelligence ("AI") is reshaping risk across industries, raising serious potential insurance coverage implications. ...more

Pillsbury - Policyholder Pulse blog

Delaware Supreme Court Rejects Application of the “Bump-Up” Exclusion in Harman Decision

When corporate transactions engender shareholder litigation, Directors’ and Officers’ liability insurers all too often invoke the so-called “bump-up” exclusion to bar coverage of such claims. These provisions, common in D&O...more

Pillsbury - Policyholder Pulse blog

SDNY Rejects Insurer’s Attempt to Stretch D&O Policy’s “Subsequent Acts” Exclusion

In a recent decision from the Southern District of New York, Judge Jed S. Rakoff rejected an insurer’s attempt to stretch a “Subsequent Acts” exclusion beyond its text and denied a motion to dismiss a policyholder’s coverage...more

Morrison & Foerster LLP

Above Board: Securities Litigation & Enforcement Outlook for 2026

In this episode of the Above Board podcast, hosts Scott Lesmes and Haima Marlier are joined by Morrison Foerster Securities Litigation partners Jamie Levitt and Ryan Keats to discuss what public companies can expect in...more

Pillsbury Winthrop Shaw Pittman LLP

Bankruptcy Court Awards $2.5 Million in Mandatory Indemnification to Director Against Chapter 7 Estate

The U.S. Bankruptcy Court for the Western District of Texas has concluded that a post-judgment motion under Federal Rule of Civil Procedure 54 provides the proper vehicle for seeking indemnification under section 145 of the...more

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