Specialty Lines

Expert Analysis

• What Cos. Should Know About D&O Policy Landscape In 2022

  

  Directors and officers liability insurance issues are likely to evolve this year against the backdrop of a new COVID-19 variant, rising inflation and other developments, particularly with regard to antitrust-related enforcement, special purpose acquisition companies, pandemic-related liability and cybersecurity, says Christina Lincoln at Robins Kaplan.

• Securing Coverage For Investors' Political Risk Claims In 2022

  

  While recent world events highlight the need for foreign investors to protect themselves from losses related to political instability, businesses should be aware of the ways political risk insurers may seek to deny or delay payment of claims, say attorneys at McGuireWoods.

• How NJ Bad Faith Auto Insurance Bill Compares To Pa.'s

  

  The recently enacted New Jersey Insurance Fair Conduct Act, is in some ways narrower and in other ways broader than Pennsylvania's notoriously strict bad faith statute and leaves open many fundamental questions, which took Pennsylvania decades of litigation to resolve, say Kristin Jones and Brian Callaway at Troutman Pepper.

• Reach Of Ohio Ransomware Ruling Limited To Policy At Hand

  

  While an Ohio appellate court's recent decision allowing the insured's ransomware attack claim to proceed in EMOI Services v. Owners Insurance may seem significant for insurance jurisprudence, it should not have implications beyond policies specifically insuring damage to software, says Jane Warring at Zelle.

• D&O Insurance Lessons From The Rise And Fall Of Theranos

  

  After the fall of Theranos and the recent criminal conviction of founder Elizabeth Holmes, startups seeking to protect their directors and officers from exposure to personal liability should consider how eye-popping company valuations and other changes to the startup landscape will affect their D&O policies, say Lilit Asadourian and Kathryn Bayes at Reed Smith.

• Flawed NY Insurance Law Needs Amendments

  

  The New York Comprehensive Insurance Disclosure Act, recently signed by the governor, imposes a multitude of problematic disclosure obligations on defendant-insureds, which the Legislature should — and likely will — seriously consider modifying or eliminating, says Richard Mason at MasonADR.

• Beyond Insurance: Mitigating Cyber Risk In 2022

  

  As insurers move to higher premiums and less coverage for cyberattacks, companies should consider restructuring their risk mitigation strategies for the upcoming year to lessen their reliance on insurance support for data security issues, say professionals at StoneTurn.

• Justices May Hesitate To Review Calif. Fraud Coverage Case

  

  In Adir International v. Starr Indemnity, the policyholders are asking the U.S. Supreme Court to review their challenge of a California law prohibiting insurers from defending insureds in certain consumer protection claims, but the court may not be ready to decide the issue at this time, says Greg Mann at Rivkin Radler.

• NY Case Shows Insurance Possibility For SEC Disgorgements

  

  Directors and officers insurers almost invariably deny coverage for payments described as disgorgements in settlement agreements with the U.S. Securities and Exchange Commission, but the recent decision of New York's highest court in J.P. Morgan v. Vigilant demonstrates how policyholders can negotiate an insurable settlement with the SEC, say Stephen Weisbrod and Tamra Ferguson at Weisbrod Matteis.

• JP Morgan Ruling May Have Broad Insurance Implications

  

  The New York Court of Appeals' recent decision in J.P. Morgan Securities v. Vigilant Insurance — that settlement funds paid to the U.S. Securities and Exchange Commission did not constitute a penalty for insurance purposes — could have far-reaching application in other types of insurance litigation where plaintiffs could be characterized as seeking equitable relief, say Robert Shulman and Cristen Rose at Paley Rothman.

• Insurance Tips For Mitigating DOJ Cyber Initiative Risks

  

  For companies and executives involved in False Claims Act actions alleging cybersecurity failures like those envisioned by the U.S. Department of Justice's new cyber fraud initiative, certain insurance policies could help defray the substantial costs of defense and even settlement liability, say attorneys at Hunton.

• M&A Rulings Provide Guidance On 'Bump-Up' Claim Coverage

  

  As M&A activity continues to surge, several recent federal court decisions can guide companies in structuring their insurance programs and assessing whether so-called bump-up claims arising from particular M&A transactions may be covered, say Robin Cohen and Orrie Levy at Cohen Ziffer.

• BIPA Ruling Should Aid Insurers In Privacy Claims

  

  Massachusetts Bay Insurance v. Impact Fulfillment Services, a recent decision by a North Carolina federal court finding that a Biometric Information Privacy Act claim was precluded under an insurance exclusion, represents a potentially significant win for insurers due to its broadly applicable contract interpretation, say Joshua Polster and Conor Mercadante at Simpson Thacher.