Specialty Lines

Expert Analysis

• 6 Rulings Reinforce BIPA Coverage For Illinois Policyholders

  

  Six well-reasoned recent decisions in the Northern District of Illinois have considerably strengthened policyholders’ arguments for commercial general liability coverage in lawsuits brought under the Illinois Biometric Information Privacy Act, say attorneys at Neal Gerber.

• How Boards Can Address Insurance-Based Caremark Risk

  

  Recent bankruptcy proceedings, such as Purdue Pharma's, highlight that insurance is critical to ensuring an organization's solvency and ability to pay claimants, making it important for boards to prioritize adequate insurance and risk-management as core Caremark responsibilities, say attorneys at Cooley.

• 4th Circ.'s Allen Trust Opinion: A New Class Action Primer

  

  The Fourth Circuit's recent opinion in Allen Trust v. Banner Life Insurance is likely to become an oft-cited instruction manual for Rule 23(b)(3) class action certification and settlement in the circuit, because of how it effectively addresses the three major issues that dominate class action litigation, say David Anthony and Justin Golart at Troutman Pepper.

• What Microcaptive Reporting Ruling May Mean For The IRS

  

  In CIC v. Internal Revenue Service, a Tennessee federal court’s decision to set aside an IRS requirement to disclose microcaptive insurance arrangements may be a step toward evidentiary standards to show that the potential for abuse in a lawful transaction is sufficient to support heightened disclosure requirements, says Samuel Lauricia at Weston Hurd.

• 7 Policy Terms Defensive IP Coverage Buyers Should Note

  

  To maximize defensive intellectual property insurance — coverage that will defend and indemnify the insured against suits alleging infringement — the technology startups driving the post-pandemic economic recovery should be focusing on specific terms within the manuscripted policies, says Micah Skidmore at Haynes and Boone.

• 3 Insurance Lessons From Target Data Breach Ruling

  

  In Target v. ACE American Insurance, a Minnesota federal court recently recognized that commercial general liability policies cover losses arising from data breaches, providing useful lessons for policyholders, including a perspective on occurrence and loss of use, say attorneys at Pasich.

• Del. Related Claims Ruling Is Good News For Insurers

  

  The Delaware Supreme Court recently denied coverage for a shareholder class action in First Solar v. National Union First Insurance, rejecting the test for assessing relatedness-based coverage issues, and opening the door for insurers to rely on specific policy wording when evaluating related claims, say attorneys at Troutman Pepper.

• How Sonic Boom Risk Informs 'Physical Loss' For COVID Era

  

  Applied to today's COVID-19 business interruption insurance battles, insurers' historical treatment of damage associated with sonic booms — or explosive sounds stemming from supersonic airplane speeds — may call into question the many court rulings barring coverage for pandemic-related losses on narrow physical loss grounds, say Peter Kochenburger at the University of Connecticut and Jeffrey Stempel at University of Nevada, Las Vegas.

• Justices Must Apply Law Evenly In Shadow Docket Rulings

  

  In recent shadow docket decisions, the U.S. Supreme Court has inconsistently applied the requirement that parties demonstrate irreparable harm to obtain injunctive relief, which is problematic for two separate but related reasons, says David Hopkins at Benesch.

• Preparing For New Mandatory Cyber Reporting Rules

  

  The requirements of a new federal law mandating cyber incident reporting for critical infrastructure will not become operational for several months, but affected companies should begin assessing whether their response plans incorporate critical policies and procedures to ensure compliance, say Steven Stransky at Thompson Hine and Lacy Rex at Oswald Companies.

• What Cos. Can Glean From Early Cyber Policy Cases

  

  Insurance claims for cyberattacks under cyber-specific policies have thus far been less contested than claims brought under commercial, crime and professional liability policies, however that may be changing, as cyber losses and liabilities continue to escalate and the market hardens, says Daniel Healy at Anderson Kill.

• A Guide To Extrinsic Evidence In Determining Duty To Defend

  

  As the eight-corners rule for the duty to defend is increasingly riddled with exceptions to its strict formulation of confining the analysis to only the language of the insurance policy and the underlying complaint, Richard Mason at MasonADR discusses the newest notable decisions and offers strategies for attorneys litigating the duty to defend.

• What Insureds Should Look For In Excess Policies

  

  A recent California appellate court decision, Truck Insurance Exchange v. Kaiser Cement, demonstrates how courts will protect policyholder expectations against primary insurance carriers' actions that might restrict available excess coverage, and highlights how insureds should be diligent in reviewing excess policies on primary erosion, say Courtney Horrigan and Elizabeth Taylor at Reed Smith.