Successive lawsuits with similar facts often give rise to fights between insurers over which insurance policy must defend the lawsuit. Why? Because many insurance policies have provisions that define losses to include those that relate to an earlier claim. This may mean that if a claim was brought two years ago and noticed to that … Continue Reading
To obtain insurance coverage, you have to be an insured under the insurance policy. Pretty fundamental. Successor and affiliate rights to coverage under the existing insurance policy is a big issue. Determining who is an insured is fundamental to coverage. In a recent case, the First Circuit had to decide whether a new church, which … Continue Reading
Companies that bring marketing campaigns using unsolicited faxes tend to end up in putative class actions under the Telephone Consumer Protection Act (“TCPA”). Many companies use vendors to design and implement those campaigns. Those vendors are not always named in the TCPA action. What happens when the TCPA action settles and the vendor contributed to … Continue Reading
A Directors and Officers (“D&O”) insurance policy provides coverage for a multitude of actions by corporate officers. D&O policies, however, come with many exclusions to void coverage for intentional acts and other actions founded on contracts and other instruments. Many corporate officers, especially in smaller companies, look to D&O policies to defend and indemnify them … Continue Reading
Directors and Officers (“D&O”) insurance policies cover individuals and entities for a wide variety of claims for “wrongful acts.” Many D&O policies provide coverage for claims based on criminal proceedings. When criminal charges are settled against corporations and officers, very often the settlement includes fines, penalties, cost of investigation and other payments. Are these payments … Continue Reading
This is a client alert that we recently put together addressing a recent case on whether an appraisal action is a “securities claim” under a D&O policy.… Continue Reading
Directors and Officers (“D&O”) insurance policies have been written on a claims-made basis for decades. Because of the nature of claim-made policies, D&O policies often have provisions addressing prior claims and the relationship between similar allegations in pending claims. D&O policies also often have exclusions for prior and/or pending litigation. These provisions address the circumstances … Continue Reading
How many times have you seen a court decision or commentary stating that the duty to defend is broader than the duty to indemnify? A lot I bet. Essentially, a policy with a duty to defend provides “litigation” insurance to the policyholder, even though the claim may never result in any indemnity payment. Most courts … Continue Reading
Claims-made and reported policies typically contain, as a condition precedent, fairly strict notice requirements. The entire point of a claims-made policy is to restrict the policy to claims made during the policy period and reported during the policy period or any extended reporting period. Giving notice early and often is a mantra that is often … Continue Reading
It is pretty common for D&O and E&O and other professional liability claims-made policies to have exclusions that preclude coverage for incidents that took place and were noticed prior to the inception of the policy. Unless the policyholder has purchased “nose” coverage or has a retroactive date that goes back far enough, a prior noticed … Continue Reading
Directors and officers (“D&O”) liability insurance generally protects directors and officers against legal expenses and personal liability for acts and omissions taken in their capacity as directors and officers of the insured company. In a recent case, coverage was excluded where directors also acted as investors of the company.… Continue Reading
Obtaining insurance coverage for a government investigation is often complicated by the type of investigation and the available coverage. Most policies that cover aspects of government investigations–directors and officers liability policies or errors and omissions policies–are written on a claims-made form and exclude claims that relate back to prior or pending claims. Very often the … Continue Reading
Most companies that provide specialized or professional services, like stock exchanges, carry both directors and officers liability insurance (“D&O”) and errors and omissions insurance (“E&O”). These coverages are meant to be complimentary and not overlapping. D&O covers “wrongful acts” by directors and officers. E&O covers negligent acts in performing professional services. D&O policies typically exclude … Continue Reading
A typical directors and officers liability insurance policy provides coverage for officers and directors of a corporation for all loss that is not indemnified by the corporation resulting from a covered claim for a wrongful act as defined by the policy. Virtually all D&O policies also include an “Insured v. Insured Exclusion,” which precludes coverage for … Continue Reading
