Specialty Lines

Expert Analysis

• Insurance Coverage For ChatGPT Legal Fiasco: A Hypothetical

  

  William Passannante at Anderson Kill draws on the recent case of an attorney sanctioned by the Southern District of New York for submitting a ChatGPT-authored brief to discuss what the insurance coverage for the attorney's hypothetical claim might look like.

• Insurance Implications Of High Court Affirmative Action Ruling

  

  The U.S. Supreme Court's recent ruling striking down affirmative action admissions policies at Harvard University and the University of North Carolina will likely result in more litigation related to hiring practices, with implications for insurance coverage, meaning policyholders must remain wary of exclusions and other potential roadblocks, say attorneys at Pillsbury.

• What The ESG Divide Means For Insurers And Beyond

  

  The debate around ESG is becoming increasingly polarized, with some states passing legislation that prohibits the use of ESG factors and others advancing affirmative legislation, highlighting the importance for insurers and other companies to understand this complex legal landscape, say Scott Seaman and Bessie Daschbach at Hinshaw.

• 2 Years Later: TransUnion's Impact On Data Breach Litigation

  

  In the two years since the U.S. Supreme Court’s landmark TransUnion decision, plaintiffs have sought to bypass the effects of the ruling — which poses a significant impediment to large data breach class actions and uncertainty for cyber insurers — through various clever pleading forms, say Jason Fagelman and Sarah Cornelia at Norton Rose, and Amanda Thai at Beazley.

• Insurance Considerations For State Biometric Privacy Claims

  

  As Connecticut and Colorado join the growing number of states that have enacted biometric data privacy acts auguring significant damages, in-house counsel thinking about insurance coverage for privacy liability should consider several key factors including clarity of exclusions, say Peter Halprin and Tae Andrews at Pasich.

• Case Law Is Mixed On D&O Coverage For Gov't Investigations

  

  As the Fourth Circuit’s recent decision in Brown Goldstein v. Federal Insurance Co. demonstrates, federal appeals courts take different approaches to determine whether government investigations are covered by directors and officers liability insurance, so companies and individuals must review their policy language, say Chloe Law, Jan Larson and Caroline Meneau at Jenner & Block.

• 4th Circ. Ruling Continues Trend Of Insurer Bump-Up Wins

  

  The Fourth Circuit's recent decision in Towers Watson v. National Union Fire Insurance, finding no directors and officers insurance coverage for underpayment in a reverse triangular merger, supports an emerging consensus that "acquisition" encompasses a variety of transaction types for the purposes of D&O bump-up exclusions, say Joshua Polster and Charlotte McCary at Simpson Thacher.

• 5th Circ. Ruling Aids Insureds In Contractual Exclusion Rows

  

  The Fifth Circuit's recent insurance decision in Windermere Oaks v. Allied World, in favor of coverage, provides policyholders with guidance on how to distinguish between contractual and noncontractual claims when insurers deploy broadly worded liability exclusions to deny coverage, say Max Louik and David Ledet at Reed Smith.

• Greenwashing Suits May Implicate D&O Policies

  

  As consumers, regulators, and state and local governments seek to use litigation to hold companies responsible for alleged greenwashing, businesses facing such claims have a number of approaches available for seeking insurance coverage under directors and officers policies, say attorneys at Haynes Boone.

• ALI, Bar Groups Need More Defense Engagement For Balance

  

  The American Law Institute and state bar committees have a special role in the development of the law — but if they do not do a better job of including attorneys from the defense bar, they will come to be viewed as special interest advocacy groups, says Mark Behrens at Shook Hardy.

• Private Equity Firms Shouldn't Overlook Cybersecurity Risks

  

  Given the operational, financial and reputational costs at stake, and the growing threat of cybercrime, cybersecurity should be central to deal making, internal governance and post-acquisition management for private equity firms, say Ray Bogenrief and William Ridgway at Skadden.

• ​​​​​​​BIPA Ruling Furthers Mixed Signals On Insurance Coverage

  

  A recent Illinois appellate ruling in Remprex provides another perspective on the issue of insurance coverage for Biometric Information Privacy Act lawsuits, but its reach will be limited, as it did not cover the three exceptions that have been the focus of related federal court decisions, says Charles Insler at HeplerBroom.

• What Texas Misrepresentation Ruling Means For Insurers

  

  The Texas Supreme Court's recent decision in American National Insurance v. Arce, confirming that insurers must prove intent to deceive in order to rescind coverage based on material misrepresentation, solidifies additional burdens for insurers to consider during both the underwriting and claims adjudication processes, say Josh Pedelty and Javon Johnson at Husch Blackwell.