Specialty Lines

Expert Analysis

• Insurer Considerations For Post-Pandemic Virtual Mediation

  

  To determine whether to continue engaging in virtual mediations after the pandemic ends, insurers should weigh the format's challenges against its benefits, including decreased hostility between parties, time and cost, and increased client participation, say Jennifer Gibbs and Amanda Rodriguez at Zelle.

• Key Considerations For D&O Policy Related-Claims Clauses

  

  A California federal court's decision in Stem v. Scottsdale Insurance — which found that multiple claims were subject to a single policy limit under the related-claims provision in a directors and officers insurance policy — highlights areas of consideration, such as policy language and choice of law, for businesses shopping for D&O policies, say attorneys at Hunton.

• NY Ruling Should Make Counsel More Cautious In Emails

  

  A recent New York Appellate Division decision, Philadelphia Insurance v. Kendall, makes it much more likely that a settlement could be effectuated by simple email exchanges without more formal written documentation memorializing all the terms of the settlement, says Christopher Gorman at Abrams Fensterman.

• Insurance Brokers Should Expect Wave Of E&O Claims

  

  Policyholders' unsuccessful COVID-19 business interruption suits and the pandemic-related move to remote work will likely result in a plethora of errors and omissions claims brought against insurance agents and brokers, as evidenced by recently filed cases, says Peter Biging at Goldberg Segalla.

• What SPAC Litigation Trends Could Mean For D&O Insurance

  

  A look at the last two and a half years of securities litigation related to special purpose acquisition companies suggests that directors and officers insurance policyholders should prepare to confront coverage issues, particularly given the hardening D&O insurance market and the anticipated increase in regulatory oversight, say Huiyi Chen and David Kroeger at Jenner & Block.

• The Need For Insurance Options To Protect NFTs

  

  Until insurance companies offer crucial protections to cover the unique risks in the nonfungible token market, NFT owners, buyers, marketplaces, wallet providers and server farms remain exposed to potentially significant hazards, say attorneys at Pillsbury.

• An Insurer's Guide To Policyholder Bankruptcy

  

  Given the increased likelihood of policyholders filing bankruptcy petitions in the wake of the pandemic, insurance professionals must be aware of five basic principles when dealing with an insured in bankruptcy, says Eric Fitzgerald at Goldberg Segalla.

• COVID Rulings May Support Ransomware Insurance Denials

  

  A recent spate of pandemic-related insurance decisions — where federal courts found that a temporary inability to use property doesn't qualify as physical loss or damage for coverage purposes — may be used as favorable precedent by cyber insurers denying ransomware loss claims for temporary inability to access data, say Thomas Caswell and Peter Kelly Golfman at Zelle.

• Why Legacy Insurance May Not Protect Adopters Of Bitcoin

  

  Evidenced by El Salvador's adoption of the Bitcoin standard this week, there is an emerging need for insurance products to cover the risk of owning and holding the digital asset, as it may not fall into the protected categories in legacy insurance products, say attorneys at Mound Cotton.

• Ill. BIPA Ruling Marks Critical Win For Silent Cyber Coverage

  

  The Illinois Supreme Court's recent decision in West Bend Mutual v. Krishna Schaumburg Tan, confirming that commercial general liability policies do not have to include specific language to cover claims under the Biometric Information Privacy Act, represents a critical victory for policyholders, but leaves unresolved issues in the battle over BIPA coverage, says Tae Andrews at Miller Friel.

• New Ruling Means Ky. Insurers May Rely On Notice Deadlines

  

  The Kentucky Court of Appeals recently resolved a matter of first impression in Darwin National v. Kentucky State University, deciding that an insurance claim made outside the specified 90-day reporting period was late and thus properly recognizing that the reporting requirement in a claims-made-and-reported policy reflects a bargained-for condition to coverage, say Kristi Nolley and Lindsey Dean at BatesCarey.

• How D&O Coverage Fits Into Diversity Claim Mitigation

  

  As companies face a shift in the directors and officers insurance market following a spate of recent shareholder suits over lack of diversity in corporate leadership, executive teams should review D&O policy coverage while implementing diversity initiatives that will effect meaningful, long-term change, say Natasha Romagnoli and Hannah Ahn at Blank Rome.

• D&O Insurance Implications From Tesla's Stock Drop Suit

  

  A recent shareholder stock drop lawsuit against Tesla showcases the legal perils that can follow companies' social media missteps, and highlights the importance of directors and officers liability insurance in the current age of political polarization, says Tae Andrews at Miller Friel.