Specialty Lines

Expert Analysis

• Treasury Stance On Ransomware Payment Could Hurt Targets

  

  Recent statements from two U.S. Department of the Treasury offices indicate that paying off ransomware with cryptocurrency may trigger certain registration requirements and U.S. sanctions scrutiny, placing a significant regulatory burden on cybervictims and their incident response consultants, say attorneys at McDermott.

• OFAC Cyber Ransom Guidance Has Insurance Implications

  

  A new advisory from the U.S. Department of the Treasury's Office of Foreign Assets Control will likely cause delay in insurance coverage determinations for ransom payments, but there are steps policyholders can take to secure coverage for restoration costs when a ransom is not paid, say attorneys at Hunton.

• How To Navigate A Hardening D&O Insurance Market

  

  The directors and officers liability insurance market's shift toward favoring sellers, coupled with the potential surge of lawsuits against companies as a result of COVID-19's economic impact, increases the importance of mitigating risks by reexamining existing D&O coverage, say attorneys at Jenner & Block.

• When Do Insureds' Legal Fees Constitute Defense Expenses?

  

  An Oklahoma federal court's surprising decision in Turner v. XL Specialty Insurance — now on appeal before the Tenth Circuit — found that a named defendant's legal costs did not qualify as defense expenses, highlighting ambiguities in how "defense" is defined for insurance purposes, say David Kroeger and Catherine Doyle at Jenner & Block.

• Why D&O Insurance Is Costly Despite Fewer Securities Suits

  

  Although securities class action filings have dropped drastically this year, the cost of directors and officers insurance continues to increase due to new risks presented by the pandemic and other factors, says Priya Huskins at Woodruff Sawyer.

• 3 Ways PE Firms Can Manage Risk Amid COVID-19

  

  Private equity firms should implement certain risk management tactics — such as requesting a preferred law firm and rejecting extrinsic evidence endorsements — in anticipation of increasing reluctance from insurers to cover legal defense costs amid the pandemic, says Ashley Jordan at Reed Smith.

• Attys Shouldn't Overlook Obligations To Potential Clients

  

  A recent American Bar Association opinion addressing the types of new-client consultations that could lead to disqualification is a reminder that lawyers indeed owe prospective clients certain duties, which call for attention to three best practices, say Sarah Sweeney and Thomas Wilkinson at Cozen O'Connor.

• Ohio Ruling Adds To Insurance Uncertainty For Opioid Suits

  

  An Ohio appeals court's recent decision in Acuity v. Masters Pharmaceutical fails to address an insurer's duty to indemnify policyholders embattled in opioid litigation, only amplifying the uncertainty surrounding insurance coverage for opioid judgments and settlements, say attorneys at Nicolaides.

• Pre-IPO Companies Should Upgrade Their D&O Coverage

  

  Directors and officers of private companies — especially startups preparing for their initial public offering — should consider enhancing their D&O insurance coverage to confront the new regulatory and compliance risks they face, say attorneys at Freshfields and Burns Bowen.

• 5 Tips For Purchasing Insurance During A Pandemic

  

  Insureds are likely to purchase or renew insurance at least once during the COVID-19 crisis and should plan carefully to mitigate the risk of potential coverage gaps caused by the pandemic's long duration and broad impact, says Dennis Windscheffel at Akin Gump.

• How Cos. Can Adapt To Insurance Industry After COVID-19

  

  Policyholders should maintain diligence, carefully assess risks, and thoughtfully rebalance risk transfer and mitigation strategies in order to weather the pandemic's long-term impact on the insurance industry, says Daniel Struck at Culhane Meadows.

• 'Notice Of Circumstances' May Preempt Virus Insurance Denial

  

  Insurance policyholders impacted by COVID-19 should consider proactively sending notices of circumstances to their insurers in order to preempt new pandemic policy exclusions, although this tactic carries certain risks as well, say Richard Milone and Jennifer Romeo at Milone Law Firm.

• Maximize Chances Of Insurance Coverage For COVID-19

  

  Policyholders suffering losses related to COVID-19 can take steps right now, such as documenting proof of loss and mitigation efforts, to preserve their chances of recovery under property or business interruption insurance policies, says Creighton Page at Foley Hoag.