News & Analysis as of

Denial of Insurance Coverage Policy Exclusions D&O Insurance

Wiley Rein LLP

Tenth Circuit Deems D&O Policy Ambiguous Based on Interplay of Coverage Grant with Managed Care Exclusion

Wiley Rein LLP on

The United States Court of Appeals for the Tenth Circuit, applying Kansas law, has held that a D&O insurer was obligated to reimburse defense costs where a policy expressly covered antitrust claims but excluded coverage for...more

Wiley Rein LLP

Antitrust Exclusion Applies to Claims for Unjust Enrichment and Violation of Consumer Protection Laws

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Applying California law, the United States District Court for the Eastern District of California has held that an antitrust exclusion in a D&O policy bars coverage for lawsuits alleging violation of antitrust laws, violation...more

Lowenstein Sandler LLP

Wearing Multiple Hats: Making Sure You Are Covered in All Capacities

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Today on Don't Take No for an Answer, Lynda A. Bennett and Eric Jesse discuss what happens under D&O policies when an executive wears multiple hats—or, as it’s known in the insurance industry— acts in more than one capacity,...more

Lowenstein Sandler LLP

A Cautionary Tale Highlights the Importance of Carefully Reviewing a Warranty Letter Before Signing

Lowenstein Sandler LLP on

When buying an insurance policy, a policyholder is sometimes required to sign a warranty letter affirming that they are not aware of any impending claims nor any facts or circumstances that may reasonably give rise to a...more

Carlton Fields

NY Federal Court Finds “Insured v. Insured” Exclusion in D&O Policy Trumps General Allocation Clause

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On December 9, 2022, the U.S. District Court for the Southern District of New York considered whether an “insured v. insured” (IvI) exclusion applied to bar coverage for an underlying lawsuit brought against insureds under a...more

Cozen O'Connor

Seventh Circuit Affirms Insurers’ Application of Bump Up Provision to Exclude Coverage

Cozen O'Connor on

On January 23, 2023, the U.S. Court of Appeals for the Seventh Circuit, in Komatsu Mining Corp. v. Columbia Casualty Company et al., (applying Wisconsin law), affirmed a district court’s holding that a settlement in...more

Jones Day

Ninth Circuit Rejects Insurer's Attempt to Apply D&O Policy's "Insured vs. Insured" Exclusion to Defeat Coverage

Jones Day on

The Ninth Circuit recently affirmed a lower court's ruling that a Directors and Officers Liability ("D&O") insurer had a duty to defend against a lawsuit brought by investors in an insured's commercial development project. In...more

Wiley Rein LLP

Insured v. Insured Exclusion Bars Coverage For Entirety of Suit Brought By Insureds and Non-Insureds

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The United States District Court for the District of Utah, applying Utah law, has held that an insured v. insured exclusion barred coverage for the entirety of a “mixed” action brought by both insured and non-insured...more

Wiley Rein LLP

D&O Insurer Has Duty to Defend Wrongful Death Suit Because of “Discrepancy” Between Exclusions

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The United States District Court for the Northern District of Ohio, applying Ohio law, has held that a D&O insurer had a duty to defend a wrongful death lawsuit against its insured because of a “discrepancy” between the...more

Lowenstein Sandler LLP

In the Know: The Lowenstein Insurance Recovery Group’s Tip of the Month - November 2021

Lowenstein Sandler LLP on

A recent Sixth Circuit decision highlights a split among courts regarding the application of the “insured v. insured” exclusion in D&O policies to “mixed” lawsuits, i.e., suits brought by multiple plaintiffs (who are both...more

Jones Day

Federal Court Rejects Application of D&O Policy's "Bump-Up" Exclusion to Merger Litigation

Jones Day on

Directors and Officers Liability ("D&O") insurers often attempt to rely on so-called "bump-up" exclusions in their policies as a categorical bar to the indemnification of claims arising from mergers and acquisitions entered...more

Wiley Rein LLP

Court Declines to Recognize Scrivener’s Errors in D&O Policy’s Capacity Exclusion

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The United States District Court for the Southern District of New York, applying Georgia law, has declined to recognize certain punctuation and spacing errors in the capacity exclusion of a directors and officers liability...more

Wiley Rein LLP

Derivative Exception to Insured v. Insured Exclusion Applies Only to Derivative Suits Brought by Non-Insureds

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An Oklahoma federal court has held that a derivative exception to an Insured v. Insured (IvI) exclusion applied only to derivative lawsuits brought by non-insureds, and did not save coverage for a direct claim filed by an...more

Farella Braun + Martel LLP

In Verizon Decision Careful Review of Insurance Policies Expands Coverage

In Verizon Communications Inc. v. National Union Fire Insurance Co. of Pittsburgh, Pa. the Delaware Superior Court ruled that Verizon was entitled to a defense under its D&O policy for fraudulent transfer claims. Although the...more

Hinshaw & Culbertson - Insights for Insurers

Excess D&O Policy Not Triggered by Vizio's Smart TV Litigation Claim

An excess D&O insurer had no obligation to contribute to Vizio's settlement with its primary general liability insurer for liabilities arising from the Smart TV Litigation, a California federal district court has held. See...more

Snell & Wilmer

Delaware Supreme Court Holds That Fraud is Insurable

Snell & Wilmer on

In a decision that is likely to reshape directors and officers (“D&O”) policies across the nation, the Delaware Supreme Court has held that fraudulent conduct by corporate officers and directors is insurable under Delaware...more

Wiley Rein LLP

Delaware Supreme Court Applies Delaware Law in D&O Coverage Dispute Involving California Company Incorporated in Delaware

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In a much-watched case, the Delaware Supreme Court has held that Delaware law governs a dispute regarding insurance coverage for a federal securities class action under D&O policies issued in California to a California...more

Farella Braun + Martel LLP

“Unfair Trade Practices” Exclusion Does Not Extend to Consumer Protection Claims

Two phrases combined in a single exclusion—“alleging, arising out of, based upon or attributable to any violation of any law…” and “as respects… unfair trade practices” could inspire carriers to make trouble for policyholders...more

JAMS

[PODCAST] Resolving Business Interruption Disputes Caused by the Coronavirus (COVID-19)

JAMS on

Business interruption is on the minds of many, especially now as the COVID-19 pandemic has created unprecedented legal and business challenges. In this new podcast from JAMS, two well-respected neutrals with extensive...more

Carlton Fields

Is Your “Securities Claim” Actually Covered Under Your D&O Policy? A Review of In Re Verizon Insurance Coverage Appeals

Carlton Fields on

The question of what constitutes a “securities claim” in the context of public company D&O policies is often debated in insurance coverage disputes, and the answer to this question can have significant effects on the scope of...more

Carlton Fields

Look No Further Than the Insuring Clause: Ill-Gotten Gains Do Not Constitute Covered “Loss”

Carlton Fields on

On August 26, 2019, the Eleventh Circuit Court of Appeals, applying Florida Law, held that ill-gotten gains do not constitute covered “loss” within the meaning of a D&O policy. In Philadelphia Indemnity Insurance Co. v. Sabal...more

Bradley Arant Boult Cummings LLP

Beware of Prior Act Exclusions and Retroactive Dates When Procuring or Renewing Coverage

An 11th Circuit decision issued earlier this year serves as a reminder of the importance of carefully evaluating time-based exclusions and retroactive dates when procuring or renewing coverage. Liability policies such as...more

Carlton Fields

Who is an Insured and What is a Claim? Circuit Courts Offer Guidance in Applying the “Insured vs. Insured” Exclusion in D&O...

Carlton Fields on

Typical directors and officers (“D&O”) liability policies exclude from coverage claims brought by one of the company’s directors or officers against another, or between the company and any of its directors or officers. The...more

Ballard Spahr LLP

Ninth Circuit to Decide Key TCPA Insurance Issue

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The Ninth Circuit Court of Appeals recently heard oral argument in Los Angeles Lakers, Inc. v. Federal Insurance Company, a case raising the issue of whether an exclusion for invasion of privacy claims in a directors and...more

Carlton Fields

Greed is Not Good: The Personal Profit Exclusion

Carlton Fields on

As this blog has frequently discussed, many limitations and exclusions in liability policies address “moral hazard” situations by declining to provide insurance for bad behavior. One such exclusion is the “personal profit...more

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